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We consider the spatial competition between two traditional physical (or offline) retailers and an Internet (or online) retailer where the efficiency of the latter differs from that of the former. We assume consumers are heterogeneous across two dimensions: (i) the costs of traveling to either...
Persistent link: https://www.econbiz.de/10012024739
This online appendix to "Insulated Platform Competition" includes proofs and details of our applications.The paper to which these Appendices apply is available at the following URL: "http://ssrn.com/abstract=1694317" http://ssrn.com/abstract=1694317
Persistent link: https://www.econbiz.de/10013004812
The development of internet technology has reshaped the market structure for many products. We study the price competition problem between online stores and offline stores, by allowing consumers' preferences to be more favorable towards online shopping. We consider 3 scenarios: (1) market with...
Persistent link: https://www.econbiz.de/10013244962
This paper discusses a case that a supply chain consisting of a manufacturer (M) and an e-tailer (Y) at the initial stage. There is a new e-tailer (Y) who enters the market with some probability. Both e-tailers have two selling modes to choose from, i.e., the agency selling mode and the...
Persistent link: https://www.econbiz.de/10014254189
In this paper, we analyze how different dimensions of a seller's reputation affect pricing power in electronic markets. Given the interplay between buyers' trust and sellers' pricing power, we use text mining techniques to identify and structure dimensions of importance from feedback posted on...
Persistent link: https://www.econbiz.de/10014027272
We analyze the incentives for incumbent bricks-and-mortar firms and new entrants to start an online retail channel in a differentiated goods market. To this end we set up a two-stage model where firms first decide whether or not to build the infrastructure necessary to start an online retail...
Persistent link: https://www.econbiz.de/10014028010
Consumer credit is now often instantly available on E-commerce platforms. This paper incorporates the liquidity provision into the consideration of platform competition. A platform needs to strike a balance between consumer rebates and consumer credit. We show that if there is an insufficient...
Persistent link: https://www.econbiz.de/10013405821
We investigate the causal effect of market structure on market performance in the consumer electronics. We combine data from Austria's largest online site for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. We observe input...
Persistent link: https://www.econbiz.de/10009683963
In Buy-It-Now (BIN, hereafter) auctions, sellers can make a "take-it-or-leave-it" price offer (BIN price) prior to an … eBay environment in the laboratory, we find that the eBay auction format supports deviations from truthful bidding leading … to auction prices substantially below those expected in second-price auctions. Our results reveal that the observed price …
Persistent link: https://www.econbiz.de/10011902715
We investigate experimentally on eBay how sellers set prices in "Buy-It-Now" (BIN) auctions. We find that the eBay … format leads to prices substantially below those expected in second-price auctions. Moreover, our results reveal that the … information available on eBay about buyer experience and bidding behavior correlates with the observed price deviation. Sellers …
Persistent link: https://www.econbiz.de/10012309640