Beyond the Hype of Frictionless Markets: Evidence of Heterogeneity in Price Rigidity on the Internet

@article{Bergen2005BeyondTH,
  title={Beyond the Hype of Frictionless Markets: Evidence of Heterogeneity in Price Rigidity on the Internet},
  author={Mark Bergen and Robert J. Kauffman and Dongwon Lee},
  journal={J. of Management Information Systems},
  year={2005},
  volume={22},
  pages={57-90}
}
We explore daily patterns of Internet pricing for the two major retailers, Amazon.com and Barnes and Noble (BN), using data on 377 books collected over a 449-day period in 2003-4. We frame this investigation in terms of a key question: How rigid are prices on the Internet? Are there reasons to suggest that prior predictions of more flexible prices on the Internet may not have been founded on the appropriate theoretical knowledge? We find that Internet retailers, in contrast with traditional… CONTINUE READING

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Price Points and Price Rigidity

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