Abstract: We develop and estimate a structural model of Amazon's retail platform, and use it to study the welfare consequences of regulatory interventions. On the demand side, the model features nested logit preferences across products and distribution methods (i.e., prime vs. non-prime). On the supply side, the model features a rich set of vertical relationships and pricing strategies between Amazon and third parties. We estimate the model for selected subcategories using scraped data from Keepa.com, accounting for zeros of demand as well as the endogeneity of prices and distribution methods. We use the estimated model to study the welfare consequences of regulatory interventions. Nearly all interventions proposed by regulators reduce consumer, producer and platform welfare.
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