Are online markets more integrated than traditional markets? Evidence from consumer electronics

Did the Internet make international markets more integrated? To address this question, we study long-term price differences and their speed of convergence, based on a unique data base for identical goods sold in both online traditional “brick-and-mortar” distribution channels, covering ten European countries. We find that are closely comparable between channels. Furthermore, converge only slightly faster than offline, offline at very fast rate. Finally, regardless channel, lower within same currency union. Our findings imply currently not integrated markets.