Market Entry in E-Commerce

34 Pages Posted: 28 Oct 2008

See all articles by Maximilian Kasy

Maximilian Kasy

University of California, Berkeley

Michael E. Kummer

University of East Anglia (UEA)

Date Written: October 1, 2008


We analyze the behavior of start-ups in e-commerce, namely on Austria's leading price-comparison-site, a multi-product environment with almost complete information. We use weekly panel data on price-quotes of digicams, Audio/HiFi-equipment and hardware. We furthermore use advanced estimation methods, which, having only recently been introduced to IO, aim at using a minimum of modeling assumptions. Thus, being able to trace the behavior of roughly 350 start-up companies and 600 incumbents, we investigate whether start-ups have a different composition of product-portfolios, charge lower prices and offer fewer goods.

Suggested Citation

Kasy, Maximilian and Kummer, Michael, Market Entry in E-Commerce (October 1, 2008). NET Institute Working Paper No. 08-23, Available at SSRN: or

Maximilian Kasy (Contact Author)

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

Michael Kummer

University of East Anglia (UEA) ( email )

Norwich Research Park
Norwich, Norfolk NR4 7TJ
United Kingdom

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