Online book prices drop with more competition and advertising, benefiting consumers.
The article looks at how online book prices are set by different stores. They studied 399 books from 32 US online bookstores between August 1999 and January 2000. They found that more competition led to lower prices and less price differences between stores. Books that were advertised more also tended to have lower prices. Each store had its own way of standing out, like offering unique brands, prices, or book selections.