Internet retail demand : taxes, geography, and online-offline competition

摘要: Data on sales of memory modules are used to explore several aspects e-retail demand. There is a strong relationship between given state and tax rates that apply purchases from online retailers. This suggests there substantial substitution retail, avoidance may be an important contributor activity. Geography matters in two ways: we find some evidence consumers prefer purchasing firms nearby states benefit faster shipping times as well separate preference for buying in-state firms. Consumers appear fairly rational ways, but boundedly others.