Sales Taxes and Internet Commerce

Sales Taxes and Internet Commerce

By
Liran Einav, Dan Knoepfle, Jonathan Levin, Neel Sundaresan
American Economic Review. January
2014, Vol. 104, Issue 1, Pages 1-26

We document some early effects of how mobile devices might change Internet and retail commerce. We present three main findings based on an analysis of eBay’s mobile shopping application and core Internet platform. First, early adopters of mobile e-commerce applications appear to be people who already were relatively heavy Internet commerce users. Second, adoption of the mobile shopping application is associated with both an immediate and sustained increase in total platform purchasing, with little evidence of substitution from the core platform. Third, differences in user behavior across the mobile applications and the regular Internet site are not yet so dramatic.