Author(s)
Maximilian Kasy and Michael Kummer
Source
NET Institute Working Paper #08-23, 2008
Summary
This paper empirically analyzes the competitive behavior of start-up firms in e-commerce.
Policy Relevance
This paper has crucial information regarding the dynamics of start-up firms. This information could be useful to policymakers and business people who are interested in how start-ups work.
Main Points
- This paper's finding conclude that start-ups typically start out on a lower price level and increase prices as they grow older.
- Further, age measured in accumulated past clicks is more relevant to start ups behavior than their aging alone.
- Finally, results from the analysis of changes in the intensity of competition mirror the evolution of portfolio size. This hints at a possible relationship between these two variables.
