Yuriy Gorodnichenko, Oleksandr Talavera, Slavik Sheremirov, 21 January 2015

An increasing share of purchases are made online where price changes are very cheap. This column presents new evidence on price dispersions and frictions using novel data from an online shopping platform from the US and the UK. Online prices are more flexible than prices in conventional stores but still sticky. Prices of goods sold online could be as imperfect as in regular markets. 

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