Assessment reveals distance significantly impacts purchasing behavior, highlighting trade patterns in online versus offline transactions.
The shift from offline to online purchasing is reshaping trade patterns: a weaker effect of distance has been observed in digital transactions. This study analyzes these dynamics at an unprecedented scale and granularity, using interregional gravity models estimated from billions of geolocated French card transactions. Using a matched sample of merchants active in both online and offline channels, with unambiguous regional identification, we compare purchasing behavior across channels. We estimate that distance matters 35% less online than offline on average, but for durables, 69% lower online; 43% lower online for nondurables; a negligible online–offline difference is found for services.
No takes yet. Share an insight, caveat, or question.
David et al. (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: