Free Riding and Sales Strategies for the Internet

A-Tier
Journal: Journal of Industrial Economics
Year: 2001
Volume: 49
Issue: 4
Pages: 441-461

Authors (2)

Dennis W. Carlton (University of Chicago) Judith A. Chevalier (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

For many products, Internet sales can free ride off of the promotional effort exerted by brick and mortar retailers, leading manufacturers to attempt to control the availability and pricing of their products over the Internet. We examine three categories of products: fragrances, DVD players, and side‐by‐side refrigerators. Our evidence suggests that manufacturers that limit distribution in the physical world use various mechanisms to limit distribution online. In particular, these manufacturers generally prevent the sale of their products by Internet retailers that offer deep discounts. Furthermore, manufacturer websites tend to charge high prices, suggesting that manufacturers may internalize free rider issues.

Technical Details

RePEc Handle
repec:bla:jindec:v:49:y:2001:i:4:p:441-461
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25