thevalueofinformationinanonlineconsumer electronics market michaelr baye indiana university mbaye edu john morgan of california berkeley haas patrick scholten pscholte invited paper prepared for the journal public policy & marketing special issue on s information technology revolution implications consumer welfare and economic performance revised august 2002 abstract consumers buying products at lowest prices shopper com during 2000 2001 saved an average 16 percent compared to purchasing listed price consistent with a variety theories value depends size when two firms list save 11 by rather than these savings jump 20 more 30 however potential accrue only right side digital divide jel numbers d4 d8 m3 l13 keywords internet dispersion di vide we are grateful david sappington referees providing very helpful comments earlier draft 1 1introduction has come long way since day that nobel laureate george stigler noted it occupies
