Is the internet making retail transactions more efficient?

Lee, Ho Geun; Lee, Seung Chang; Kim, Hae Young; Lee, Ran Hui

doi:10.1016/s1567-4223(03)00030-9

Cited by 41 publications

(15 citation statements)

References 8 publications

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“…This is expected to increase market efficiency by reducing price dispersion. In an efficient market, where information about product prices is well disseminated, sellers’ prices are expected to converge at a single price such that any seller who charges significantly above the marginal cost will lose buyers (Lee et al, 2003). Thus, from a buyer's perspective, reducing the search costs of retrieving information about seller prices and product offerings through a digital interface allows buyers to source products at lower prices and make more informed bids.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…The existing empirical evidence also emphasizes that markets need not always become efficient. Price dispersion across markets may increase when Internet markets are newly established and immature (Lee et al, 2003), when Internet markets allow sellers to differentiate their products based on quality and trust (Brynjolfsson & Smith, 2000) or when market agents are heterogeneous in terms of their search costs (Brown & Goolsbee, 2002). From a seller's perspective, the introduction of new technology could initially lead to uncertainties in price setting and adjustments at the margin of prices over quality.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…However, studies conducted in high‐income countries on the effects of online commerce on consumer durables, such as cars, books, compact disks, and term life insurance, have found mixed evidence on the impact of electronic markets on prices and market efficiency. Few studies have reported reduced prices and efficient markets, while others have reported higher prices and probable inefficiency of the electronic markets (Brown & Goolsbee, 2002; Brynjolfsson & Smith, 2000; Clay et al, 2001; Lee et al, 1999, 2003). As empirical studies on the effects of electronic markets on other Internet markets are inconclusive, an in‐depth examination of this subject is warranted.…”

Section: Introductionmentioning

confidence: 99%

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Effects of electronic markets on prices, spikes in prices, and price dispersion: A case study of the tea market in India

Rajkhowa

Kornher

2023

Agribusiness

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Buyers and sellers in developing countries are often restricted from accessing distant markets by asymmetric price information and costly searches. Electronic marketplaces can reduce transaction costs and improve market performance. This study uses monthly panel data from 2000 to 2017 and applies a fixed effects approach using Driscoll and Kraay standard errors to address spatial and temporal correlations to provide empirical evidence on the effects of electronic markets on prices, spikes in prices, and price dispersion of an agro‐based commodity in India. The findings indicate that, between 2000 and 2017, the introduction of electronic markets reduced prices and short‐term variability in tea prices by nearly 2%. Moreover, electronic markets initially increased price dispersion between markets by 11%–14%; however, with further reduction in market friction over time, price dispersion reduced by 16%. [EconLit Citations: Q11, Q13].

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Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Effects of electronic markets on prices, spikes in prices, and price dispersion: A case study of the tea market in India

Rajkhowa

Kornher

2023

Agribusiness

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“…Besides, [49] also investigated cultural dimensions for user experience doing a cross-country and cross-product analysis of users' cultural characteristics. A cross-cultural study on how users and developers experience their use of information systems revealed differences in mobile Internet usage between users from Japan (e.g., high email traffic) and Korea (e.g., many downloads) depending on different value structures in Japan and Korea imprinted by culture [119]. Cultural differences in the understanding of metaphors applied in user interfaces were examined by [120].…”

Section: International Workhops Of Internationalization Of Products mentioning

confidence: 99%

Using Converging Strategies to Reduce Divergence in Intercultural User Interface Design

Heimgärtner¹

2017

JCC

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This chapter starts with an introduction illuminating the theoretical background necessary for taking culture into account in HCI design. Definitions of concepts used are provided followed by a historical overview on taking culture into account in HCI design. Subsequently, a glimpse of the current state of research in culture-centered HCI design is derived from secondary literature providing the gist of the structures, processes, methods, models and theoretic approaches concerning the relationship between culture and HCI design ("converging" strategies). After presenting controversies and challenges, a short discussion of results from empirical studies and design recommendations for culture-centered HCI design lead to implications and trends in future intercultural user interface design research to close the knowledge gap (the "divergence") regarding the relationship between culture and Human-Computer Interaction (HCI), i.e. converging the divergence to reach the convergent divergence.

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“…Online retailing has rapidly grown in recent years all over the world, since it seems more efficient than that by brick-and-mortar retailers [8,10]. To further amend the possible drawbacks of online selling, some online retailers have set up more than one selling channel in the competing market [6].…”

Section: Introductionmentioning

confidence: 99%

Optimal Decision Making for Online and Offline Retailers Under Bops Mode

2016

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As a new business form, the buy-online and pick-up-in-store (BOPS) mode allows consumers to pay for goods online and pick them up in a physical store. In this paper, an equilibrium model is constructed to formulate an optimal decision-making problem for online and offline retailers under the BOPS mode, where the online retailer determines the retail price of the goods and the consignment quantity in a physical store, while the offline retailer chooses the revenue share of profit by a consignment contract. Different to the existing models, the cost of overstocking and loss of understocking are incorporated into the profit function of the online retailer due to the randomness of demand. For the objective function of the offline retailer, the cross-sale quantity generated by the BOPS mode is taken into account. Then the game between the online and offline retailers is expressed as a stochastic Nash equilibrium model. Based on the analytic properties of the model, necessary conditions for the equilibrium solution are obtained. A case study and sensitivity analysis are employed to reveal the managerial implications of the model, which can provide a number of valuable suggestions on optimizing the strategies for the online and offline retailers under the BOPS mode.

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Is the internet making retail transactions more efficient?

Cited by 41 publications

References 8 publications

Effects of electronic markets on prices, spikes in prices, and price dispersion: A case study of the tea market in India

Effects of electronic markets on prices, spikes in prices, and price dispersion: A case study of the tea market in India

Using Converging Strategies to Reduce Divergence in Intercultural User Interface Design

Optimal Decision Making for Online and Offline Retailers Under Bops Mode

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