Price Dispersion Within and Across Retailers at a Comparison Site
نویسنده
چکیده
Price data from comparison sites are easy to obtain from the internet, providing ample opportunities to analyze theories on price dispersion empirically. We propose a generalized analytical model that generates heterogenous mixed pricing strategies. Making seller service ratings public on comparison site leads to price di¤erence because of vertical product di¤erentiation. Furthermore, we show that each store plays a mixed pricing strategy, a result of classic papers in the eld such as Baye and Morgan(2001) and Varian(1980). In addition, optimal advertising fee of comparison site is studied. One fee is shown to beat the combination of click-through fee and listing fee.
منابع مشابه
Asymmetric Pricing across Channels
Among all the topics about price dispersion, asymmetric price dispersion between online and o¤-line channels and asymmetric pricing across traditional retailers, e-tailers, and multichannel retailers have received the most extensive empirical examination in the literature. However, in many cases, these studies generate contradictory results. This paper jointly models traditional retailer, e-tai...
متن کاملWhy Are Product Prices in Online Markets Not Converging?
Why are product prices in online markets dispersed in spite of very small search costs? To address this question, we construct a unique dataset from a Japanese price comparison site, which records price quotes offered by e-retailers as well as customers' clicks on products, which occur when they proceed to purchase the product. The novelty of our approach is that we seek to extract useful infor...
متن کاملPrice Dispersion in the Grocery Market
The proverbial “law of one price” is virtually never empirically valid. Homogeneous goods are often sold at widely different prices by rival firms, even in environments that seem particularly conducive to economic competition. And prices for the same goods often vary over time. The grocery market seems to be one of the prime examples of price dispersion in which there exists price uncertainty. ...
متن کاملPromotion, Brand Awareness, and Price Competition in Large Online Markets
We study a model where retailers endogenously engage in both promotional advertising to attract loyal customers as well as informational advertising, which consists of deciding whether and what price to list on a price comparison site. We derive a symmetric subgame perfect equilibrium of the model and study the limiting properties of equilibrium prices, promotion, and listing decisions as the n...
متن کاملQuality-adjusted price comparison of non-homogenous products across internet retailers
This study compares prices offered by multiple Internet retailers. This task is challenging because e-tailers cannot present their entire assortments to each consumer. Therefore, the quality of the product assortments presented by different e-tailers to each consumer is not directly comparable on an item-by-item basis, resulting in nonhomogeneous offerings across retailers. We further consider ...
متن کامل