Understanding Amazon: Strategy and Welfare Implications
This project aims to provide a detailed, comprehensive analysis of the Amazon.com Inc. platform, its evolution, market power, and welfare implications. Gutierrez will utilize a massive dataset that has product information, alongside prices and sales ranks, for products sold on Amazon’s platform to produce three papers. The first will provide an overview of the Amazon platform and study the evolution and heterogeneity of fees in order to empirically test whether Amazon’s fees to sellers reflect market power. The second will consist of a structural analysis of reselling to test whether Amazon competing on its own platform is anticompetitive. And the third paper will analyze the impact of private label products. This research not only examines the Amazon platform but also provides empirical evidence on whether these types of activities can be anticompetitive.