Get smart about shopping online and save money

The reality is that offline and online price levels are identical about 72 per cent of the time. The figure is based on a study by Harvard Business School’s Associate Professor Alberto Cavallo, whose research covered 24,000 products in 10 countries, including Australia, China and Japan.
Drugstores and office-product retailers have the lowest share of identical prices, while electronics and clothing stores have the most.  

Dynamic pricing may look like a rip-off but has benefits for us all

Weimar! Zimbabwe! These were the historical precedents genuinely expressed a decade ago about what an unprecedented experiment in monetary policy would do to advanced industrial economies. A huge expansion of the money supply, through quantitative easing, and near-zero interest rates might be an immediate palliative in a deep recession but they’d spark an inflationary crisis later on. And high inflation wipes out savings and destroys living standards.

The Amazon effects and monopsony

A paper by Alberto Cavallo of Harvard University found evidence that the algorithms used by internet-based retail giants like Amazon to constantly change and adjust prices have led to greater price fluctuations in response to various macroeconomic shocks. This so-called ‘Amazon Effect’ not only forces brick-and-mortar outlets to respond in a similar manner but also
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Measuring the Facts: Using Data to Tell the True Story of Inflation

MIT Sloan professor Roberto Rigobon and Harvard University professor Alberto Cavallo are the co-founders of the Billion Prices Project. The project collects prices — it has around 15 million prices today — provided by online retailers around the world. The public data is used to conduct research in macroeconomics and international economics. The professors say
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Under ‘Amazon effect’ retailers could be more exposed to supply shocks

Harvard Business School found that the average duration for regular price changes fell to 3.65 months in 2014 to 2017 from 6.7 months in 2008 to 2010. It also investigated how prices at Amazon, Walmart, Best Buy and Safeway vary across geographic locations. Harvard’s Alberto Cavallo concludes that the paper’s most important finding is that
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Policy analysis with big data -ECB Press

The recent financial crisis, and the euro area sovereign debt crisis that followed, were characterised by periods of increased heterogeneity, market fragmentation and sudden turns in economic activity. This often made it difficult for economic policymakers to understand and assess in real time the underlying forces driving economic behaviour. Both traditional statistical datasets and our
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