•   Home
  • Proceedings
  • International Conference on Engineering and Business Managem...

International Conference on Engineering and Business Management (EBM 2010 PAPERBACK)

Chengdu,China,China,3.24-3.26,2010

ISBN: 978-1-935068-05-1 Scientific Research Publishing, USA

Paperback 6066pp Pub. Date: March 2010

Category: Engineering

Price: $280

Title: Note on Mixed Pricing Strategy as the Source of Price Dispersion Online: The Role of Virtual Consumers
Source: International Conference on Engineering and Business Management (EBM 2010 PAPERBACK) (pp 5281-5283)
Author(s): Yi-Fan WANG, School of Economics & Management, TUTE, Tianjin
Abstract: Abstract: Bailey (1998) and Brynjolfsson and Smith (2000) found that price dispersion is surprisingly not lower in online markets compared to conventional markets. The convenience of obtaining price information did not seem to push price converge, as reasoned by economists. The authors attribute their unexpected findings to several factors, including market immaturity and heterogeneity in online retailer attributes such as trust and awareness. Our paper suggests that price dispersion could exist as equilibrium strategy when firms hide their pricing information in this super competitive retail market. In a retail market participated by pure web-based retailer and dual-channel based retailer (also called brick-and-click), the analysis finds a relationship between the ratio of conventional and virtual consumers and the characteristics of price competition. It is shown that the size of virtual consumers plays a pivotal role in the market equilibrium. The result provides an analytical account of price dispersion empirically observed online. The model embraces modern retail market trends such as virtual consumers, conventional consumers, pure web-based retailers and dual-channel based etc. Pure strategy price equilibrium emerges when the proportion of virtual consumers is small, while a mixed pricing equilibrium emerges when the proportion of virtual consumers is large.
Proceedings by Subjects
Resources
Products
Contact us
book@scirp.org
WhatsApp +86 18163351462(WhatsApp)
Click here to send a message to me 1243940697
Book Publishing WeChat
Follow SCIRP
Free SCIRP Newsletters
Copyright © 2006-2024 Scientific Research Publishing Inc. All Rights Reserved.
Top