Papers by Erik Brynjolfsson
Management Science, Nov 1, 2003
SSRN Electronic Journal, 2010
The Matrix of Change and Supporting Software, Dec 1, 1997
One of the key advantages of information technology is its ability to support new organizational ... more One of the key advantages of information technology is its ability to support new organizational forms. The task of shifting between old and new forms, however, can be a difficult, time consuming, and haphazard process (Davenport, 1993, Davenport and Stoddard, 1994; Hammer, 1990). Interactions among various work practices can lead to numerous unanticipated side effects as mangers alter individual practices without considering whole systems of work. In particular, the importance of complementarities ...
In this paper we explore the relationship between computers and productivity growth at the firm l... more In this paper we explore the relationship between computers and productivity growth at the firm level. We apply standard productivity and growth accounting techniques to data from 600 large US firms over 1987-1994. While we find that computer make a positive and significant contribution to output growth in the short term (using 1 year differences), the implied returns to computers are two to five times greater when differences are taken over seven years instead of one year. Our results challenge the conclusions drawn from aggregate data on computers and productivity, but are consistent with case evidence that the combination of computers and organizational co-investments make a substantial contribution to growth. JEL Categories: O3 Technological Change; D24 Capital and Total Factor Productivity Computers and Productivity Growth Page 1
We thank Dealtime.com, now known as Shopping.com, for generously collecting the data necessary to... more We thank Dealtime.com, now known as Shopping.com, for generously collecting the data necessary to conduct this research and for providing valuable insight into the shopbot market and would like to acknowledge financial support from the Marketing Science Institute.
Quantitative Marketing and Economics, 2010
Internet shopbots allow consumers to almost instantly compare prices and other characteristics fr... more Internet shopbots allow consumers to almost instantly compare prices and other characteristics from dozens of sellers via a single website. We estimate the magnitude of consumer search costs and benefits using data from a major shopbot for books. For the median consumer, the estimated benefit from simply scrolling down to search lower screens is $6.55. This amounts to about 60% of the observed price dispersion and suggests that consumers face significant search costs, even in this "nearly-perfect" market. Price elasticities are relatively high compared to offline markets (-7 to -10 in our base model). Furthermore, contrary to the common assumption, search intensity is not correlated with greater price sensitivity. Instead, consumers who search multiple screens put relatively more weight on non-price factors like brand.
The Journal of Industrial Economics, 2003
Internet shopbots compare prices and service levels at competing retailers, creating a laboratory... more Internet shopbots compare prices and service levels at competing retailers, creating a laboratory for analysing consumer choice. We analyse 20,268 shopbot consumers who select various books from 33 retailers over 69 days. Although each retailer o¡ers a homogeneous product, we ¢nd that brand is an important determinant of consumer choice. The three most heavily branded retailers hold a $1.72 price advantage over more generic retailers in head-to-head price comparisons. In particular, we ¢nd that consumers use brand as a proxy for retailer credibility in non-contractible aspects of the product and service bundle, such as shipping reliability.
Abstract: Shopbots are computer agents that aid consumers by comparing prices across online store... more Abstract: Shopbots are computer agents that aid consumers by comparing prices across online stores. A consumer visits a shopbot web site, inputs a product to search for, such as a book, and then the shopbot automatically queries available online stores, and tabulates and presents the results to the consumer. Consumers consider a subset of these stores by clicking upon a hyperlink displayed with the offer. This evoked consideration set is important to shopbot owners because shopbot owners are generally compensated directly for ...
Recently, labor demand has shifted in favor of high-wage, high-skill work, contributing to a subs... more Recently, labor demand has shifted in favor of high-wage, high-skill work, contributing to a substantial rise in income inequality in the United States. We argue that information technology (IT) and associated changes in work organization are important causes of this shift. IT is among the most important technological changes affecting the economy and employers who use IT usually co-invent new approaches to workplace organization and new product and service offerings. IT and the co-inventions together change the mix of skills that employers demand, often substituting computers for low skill work while complementing work that requires certain cognitive and social skills.
Recently, labor demand has shifted in favor of high-wage, high-skill work, contributing to a subs... more Recently, labor demand has shifted in favor of high-wage, high-skill work, contributing to a substantial rise in income inequality in the United States. We argue that information technology (IT) and associated changes in work organization are important causes of this shift. IT is among the most important technological changes affecting the economy and employers who use IT usually co-invent new approaches to workplace organization and new product and service offerings. IT and the co-inventions together change the mix of skills that employers demand, often substituting computers for low skill work while complementing work that requires certain cognitive and social skills.
Qme-quantitative Marketing and Economics, 2010
Internet shopbots allow consumers to almost instantly compare prices and other characteristics fr... more Internet shopbots allow consumers to almost instantly compare prices and other characteristics from dozens of sellers via a single website. We estimate the magnitude of consumer search costs and benefits using data from a major shopbot for books. For the median consumer, the estimated benefit from simply scrolling down to search lower screens is $6.55. This amounts to about 60% of the observed price dispersion and suggests that consumers face significant search costs, even in this “nearly-perfect” market. Price elasticities are relatively high compared to offline markets (−7 to −10 in our base model). Furthermore, contrary to the common assumption, search intensity is not correlated with greater price sensitivity. Instead, consumers who search multiple screens put relatively more weight on non-price factors like brand.
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Papers by Erik Brynjolfsson