Online price wars drive down consumer electronics prices, benefiting shoppers.
The article investigates how online stores compete in pricing for electronics like cameras and smartphones. By analyzing data from a big price comparison site in Austria and industry-specific data, the researchers track firms' prices and strategies. Understanding how e-tailers act is important as online sales grow. Regulators also want to know how many firms are needed for competition. The study shows that competition is crucial for keeping prices reasonable and ensuring enough products are available.