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We analyze a market where firms compete in a conventional and an electronicretail channel. Consumers easily compare prices online, but some incur purchaseuncertainties on the online channel. We investigate the market shares of the two retailchannels and the prices that are charged. We find that...
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Many online-first retailers have adopted omnichannel strategies to expand their territories from online to offline. In this paper, we seek to understand the function of offline showroom for multi-category online retailing platforms, which is relatively understudied. Using detailed...
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For a multi-channel retailer, opening a physical store can lead to cannibalization of online sales as consumers' transportation costs decrease. Holding purchase frequency fixed, this channel switching behavior represents an economic loss to the firm if customers buy fewer or lower margin items...
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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...
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