• Corpus ID: 15705509

Pricing and Price Dispersion in E-commerce

@inproceedings{Waldeck2002PricingAP,
  title={Pricing and Price Dispersion in E-commerce},
  author={Roger Waldeck},
  year={2002}
}
  • R. Waldeck
  • Published 23 October 2002
  • Business, Economics
Competition on electronic markets will result in lower price level and price dispersion. Such a view is commonly expressed in the literature of electronic commerce. It is justified by the fact that lower search costs by consumers and free entry for firms will foster price competition amongst firms. This paper tries to mitigate a bit this idea by looking at the influence of information and competition on prices of a homogeneous good. In this paper, we analyse the possible driver of price… 

Figures from this paper

DO SHOPBOTS AND LOWER SEARCH COSTS IMPROVE THE EFFICIENCY OF ELECTRONIC MARKETS ? AN AGENT-BASED APPROACH First Draft
Buyers' search behaviors on electronic markets are characterized by two distinctive features: i) diminishing search costs and ii) the use of informational intermediaries such as price comparison
Consumer Selection of E-Commerce Websites in a B2C Environment: A Discrete Decision Choice Model
TLDR
A model is presented that proposes that Web site value in terms of (perceived) Web site quality as well as awareness of the site and consumer differences (on price sensitivity) are key variables in explaining online consumer behavior in their choice of Web site despite the existence of price dispersions.
Price Dispersion in C2C Market Based on Multi-agent Modeling and Simulation
TLDR
Four representative factors that are business number, business credit, customer type and transfer cost are chosen as research object and EMPD is established by using multi-agent method and Repast simulation platform is utilized to simulate the model.

References

SHOWING 1-10 OF 32 REFERENCES
Can price dispersion in online markets be explained by differences in e-tailer service quality?
It has been hypothesized that the online medium and the Internet lower search costs and that electronic markets are more competitive than conventional markets. This suggests that price dispersion of
Reducing buyer search costs: implications for electronic marketplaces
Information systems can serve as intermediaries between the buyers and the sellers in a market creating an "electronic marketplace" that lowers the buyers' cost to acquire information about seller
Competition and the Number of Firms in a Market: Are Duopolies More Competitive than Atomistic Markets?
This paper uses a variant of the standard search model to examine market equilibrium and the co nsequences of an increase in the number of firms. If marginal search costs increase with the number of
Information and Consumer Behavior
  • P. Nelson
  • Business, Economics
    Journal of Political Economy
  • 1970
Consumers are continually making choices among products, the consequences of which they are but dimly aware. Not only do consumers lack full information about the prices of goods, but their
Consumer Information, Equilibrium Industry Price, and the Number of Sellers
Define a reputation good to be any product or service for which sellers' products are differentiated and consumers' search among sellers consists of a series of inquiries to relatives, friends, and
A Simple Model of Equilibrium Price Dispersion
This paper demonstrates that price dispersion can exist even within the context of a very simple model. Identical buyers with elastic demand curves sample sequentially from a known price
Rationing rule, imperfect information and equilibrium
Summary. The impact of imperfect information on the price setting behaviour of firms is analysed. Specifically, consumers support an information cost to become informed about prices. Firms are
Oligopolistic Pricing with Sequential Consumer Search
N identical stores compete by choosing prices for a homogeneous good with constant marginal costs. Consumers search sequentially with perfect recall for the lowest price. One class of consumers,
Discrete Equilibrium Price Dispersion
An explicit solution of an equilibrium model with price-setting firms and searching customers makes possible a number of comparative-statics predictions about how cost differences among firms, search
Economics of information in the Web economy: Towards a new theory?
...
...