ECIN Replication Package for "Price Matching in Online Retail"

This document describes how to replicate the results of “Price Matching in Online Retail”.<br>In this work, we
analyze a sample of consumer electronics products sold by the US NewEgg online
retailer to study the impact of price-matching guarantees (PMGs) on prices. By
applying a difference-in-differences approach, we find that the
price of the policy-adopting retailer increases
by 4.7% during the policy validity period and up to five days after treatment, while those of the non-adopting competitor
are not affected. The results are mainly driven by
highly rated, visible, and expensive products, whereas the policy does not affect low-rated, less visible,
and cheaper products. These findings
are consistent with the hypothesis that PMGs act as price discrimination or signaling tools.