Hate haggling?


Virginia Postrel's latest NYTimes feature entitled, "How much is that Civic online?" describes the data suggesting that shopping for a car by the internet saves money *and* the haggling. Money paragraphs:
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On the Internet, "everybody paid the white male price," Professor Zettelmeyer said. "Suddenly it became totally irrelevant what your race or gender or income or education was."

In their most recent work, which includes a survey of car buyers, the economists try to determine how Internet shopping lowers prices. They find two effects. Using the Internet makes consumers better informed and, hence, better able to bargain — the information effect. And the referral services use their own power to make sure dealers keep prices low — the contract effect.
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"An element that we sometimes underestimate, which doesn't show up anywhere in the G.D.P., is the sheer amount of disutility that consumers derive" from dickering with car salesmen, Professor Zettelmeyer said.

Internet car shopping saves not just money. "A lot of people just dread this process," he said. "To the degree that we can reduce the dread factor, that is providing real value."
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When my 1990 Nissan Maxima (170,000 miles) finally gives up the ghost, I'll have to look into doing this internet car shopping thing!



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