An Analysis of International Price Differentials on eBay

15 Pages Posted: 21 Jun 2010

See all articles by Philipp Maier

Philipp Maier

Bank of Canada - International Department

Abstract

Online auction sites like eBay provide ways to measure what consumers buy and how much they pay. Does this imply that consumers pay similar prices, irrespective of their location? Comparing prices for homogeneous, tradable goods in the euro area and the United Kingdom, we find that prices differ significantly. The differential is not related to countries' having different currencies. However, price dispersion — the variance of prices — does seem to be smaller if two countries share a common currency. Our results confirm the importance of national borders in explaining price differences and their magnitude is related to (not) sharing a common currency.

Suggested Citation

Maier, Philipp, An Analysis of International Price Differentials on eBay. Contemporary Economic Policy, Vol. 28, No. 3, pp. 307-321, July 2010, Available at SSRN: https://ssrn.com/abstract=1627387 or http://dx.doi.org/10.1111/j.1465-7287.2009.00179.x

Philipp Maier (Contact Author)

Bank of Canada - International Department ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada

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