Logistics outsourcing has increased with the commercialization of the Internet, implying a reduction in the corresponding transaction costs. The Internet – with its universal connectivity and open standards – radically enhanced information technology (IT) capabilities, and we hypothesize...

We examine the implications of proximity to a physical store in offline-online retail competition where online dis-utility costs, which encompasses factors such as trust in the seller, returns, and after-sales support, are important. Building on classical models, we consider a traditional...