Consumer Search and Product Returns in E-Commerce

• 成果类型: Article
• 署名作者: Janssen, Maarten; Williams, Cole
• 署名单位: University of Vienna; Durham University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20230040
• 发表日期: 2024
• 页码: 387-419
• 关键词: model

摘要

E -commerce has led to a surge in products being returned after purchase. We analyze product returns as resulting from a trade-off between the social waste of returns and the search efficiency gains of being able to inspect a product's value after purchase. We find whenever returns are efficient , the market generates too few returns, as the parties involved in the transaction do not internalize the welfare benefit of consumers continuing their search , generating profits for other firms. We also show , despite their consumer -friendly appearance and the private cost of returns , firms may benefit and capture the gains from less costly search. ( JEL D11, D21, D83, L25 )