Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280144 
Year of Publication: 
2023
Series/Report no.: 
GLO Discussion Paper No. 1351
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We analyze a sample of consumer-electronics products sold by the US NewEgg online-retailer to study the impact of Price Matching Guarantees (PMGs) policies on prices. By applying aDifference-in-Differences approach,we find that prices of the policy-adopting retailer increase by 4.7% during the policy validity period and up to five days after the treatment, while those of the major non-adopting competitor are not affected. Results are mainly driven by highlyrated, visible and expensive products, while the policy does not affect low-rated, less visible and cheaper ones. Overall findings are consistent with the hypothesis that PMGs act as price discrimination tools.
Subjects: 
Price Matching Guarantees
Online Retailing
User Generated Contents
Difference-in-Differences
Price Discrimination
Collusion
Signalling
JEL: 
L11
L13
L15
L81
Document Type: 
Working Paper

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