Who shops online? the role of policy, household characteristics, and family networks

Abstract This paper examines the unintended effects of public policy measures and social dynamics on e-commerce adoption, using a comprehensive dataset of household level transactions at Switzerland’s largest retailer matched to administrative registers. First, we study how the COVID-19 pandemic and temporary policy measures impacted the adoption of online grocery shopping in Switzerland, and we document a substantial increase in online expenditures. This shift is heterogeneous, with younger, larger, and richer households, as well as those with limited local store access, being particularly responsive. Moreover, we find that stricter mitigation policies intensify online usage. Second, we examine the role of social networks in accelerating the diffusion of e-commerce. We highlight strong peer effects: within multi-generational families and among neighbors, the adoption of online shopping by one household significantly raises the likelihood of adoption by others. These findings reveal the impact of policy measures and the importance of social networks in shaping digital consumption behavior.