Electronic markets and electronic hierarchies
Communications of the ACM
Do electronic marketplaces lower the price of goods?
Communications of the ACM
Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Principles of Internet Marketing
Principles of Internet Marketing
Trust Transfer on the World Wide Web
Organization Science
The Value of Internet Commerce to the Customer
Management Science
Bundling and Competition on the Internet
Marketing Science
Measuring Factors that Influence the Success of Internet Commerce
Information Systems Research
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Using Transaction Prices to Re-Examine Price Dispersion in Electronic Markets
Information Systems Research
Pricing for shipping services of online retailers: Analytical and empirical approaches
Decision Support Systems
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The Internet is perceived to increase market efficiency, and thus reduce price dispersion. Yet the empirical evidence to support this proposition is mixed. Internet retailers of homogeneous products may choose to actively differentiate their stores and offerings in order to avoid competing just on price. We explore how differentiation among these retailers affects pricing and web traffic. We present empirical results from two homogeneous goods markets, software and personal digital assistants, using price data for a basket of goods from Internet retailer websites. Based on data collected from 90 different retailers and 1,847 product prices, we find that high traffic is associated with lower market prices. However, Internet retailers can mitigate the tendency to compete on price by relying on external linkages from other websites. Furthermore, Internet retailers may use economies of scale and participation with shopbots in conjunction with charging lower prices. Surprisingly, Internet retailer use of economies of scope is associated with higher prices. This indicates that firms may be in a position to avoid price competition by selling a wider product variety.