The responses of internet retail prices to aggregate shocks: a high-frequency approach

Yuriy Gorodnichenko; Viacheslav Sheremirov; Oleksandr Talavera

doi:10.1016/j.econlet.2018.01.014

The responses of internet retail prices to aggregate shocks: a high-frequency approach

Yuriy Gorodnichenko^*, Viacheslav Sheremirov, Oleksandr Talavera

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

Using a unique dataset of daily price listings and the associated number of clicks for precisely defined goods from a major shopping platform, we examine whether internet prices respond to aggregate shocks at a high frequency. We find little evidence that online prices respond promptly to unanticipated announcements about macroeconomic activity. Shopping activity also appears unresponsive to aggregate shocks, suggesting that internet retailers may follow individual demand for their products more closely than aggregate demand.

Original language	English
Pages (from-to)	124-127
Number of pages	4
Journal	Economics Letters
Volume	164
Early online date	31 Jan 2018
DOIs	https://doi.org/10.1016/j.econlet.2018.01.014
Publication status	Published - 1 Mar 2018

Keywords

Aggregate shocks
High-frequency approach
Online markets
Price stickiness

ASJC Scopus subject areas

Finance
Economics and Econometrics

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The responses of internet retail prices to aggregate shocks: a high-frequency approach

Abstract

Keywords

ASJC Scopus subject areas

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