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What Drives Price Dispersion in the European E-commerce Industry?

price convergence of 120 traded goods. While the Single European Act decreased price differences by 5%, the single currency increased it by 2%. However, the euro had different impact considering product categories- price convergence had been observed for cars, while divergence for food and tobacco. Baye et al . (2006) study the impact of euro on prices, using data collected from a price comparison site (Kelkoo). The data covers prices for 28 products across 7 EU countries. The authors find an increase of prices relative to the non-EU countries. The observed cross

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