When and How is the Internet Likely to Decrease Price Competition?
Marketing Science
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Pricing strategies in B2C electronic commerce: analytical and empirical approaches
Decision Support Systems
Note on Self-Restraint as an Online Entry-Deterrence Strategy
Management Science
Information Systems Research
Internet channel entry: retail coverage and entry cost advantage
Information Technology and Management
Effect of Electronic Secondary Markets on the Supply Chain
Journal of Management Information Systems
Impact of e-book technology: Ownership and market asymmetries in digital transformation
Electronic Commerce Research and Applications
Determinants and Outcomes of Internet Banking Adoption
Management Science
Using Transaction Prices to Re-Examine Price Dispersion in Electronic Markets
Information Systems Research
Structural Workshop Paper---Data Selection and Procurement
Marketing Science
Quantifying Transaction Costs in Online/Off-line Grocery Channel Choice
Marketing Science
Traditional and IS-Enabled Customer Acquisition on the Internet
Management Science
Analysis of emerging technology adoption for the digital content market
Information Technology and Management
Ushering Buyers into Electronic Channels: An Empirical Analysis
Information Systems Research
Situational variables in online versus offline channel choice
Electronic Commerce Research and Applications
A new evolution model for B2C e-commerce market
Information Technology and Management
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Our paper shows that the parameters in existing theoretical models of channel substitution such as offline transportation cost, online disutility cost, and the prices of online and offline retailers interact to determine consumer choice of channels. In this way, our results provide empirical support for many such models. In particular, we empirically examine the trade-off between the benefits of buying online and the benefits of buying in a local retail store. How does a consumer's physical location shape the relative benefits of buying from the online world? We explore this problem using data from Amazon.com on the top-selling books for 1,497 unique locations in the United States for 10 months ending in January 2006. We show that when a store opens locally, people substitute away from online purchasing, even controlling for product-specific preferences by location. These estimates are economically large, suggesting that the disutility costs of purchasing online are substantial and that offline transportation costs matter. We also show that offline entry decreases consumers' sensitivity to online price discounts. However, we find no consistent evidence that the breadth of the product line at a local retail store affects purchases.