The Impact of Price Adjustment Costs on Price Dispersion in E-Commerce

Böheim, René; Hackl, Franz; Hölzl-Leitner, Michael

doi:10.2139/ssrn.3338917

Cited by 2 publications

(2 citation statements)

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“…Price dispersion is a prominent feature of online (Pan et al, 2004; Stylianou et al, 2005) and offline retailing (De Silva et al, 2019) alike. Online markets are not necessarily more integrated than offline markets (Duch‐Brown et al, 2021) and costs of price adjustment still exist online (Böheim et al, 2021). As e‐commerce matures, however, markets seem to become more efficient, which manifests itself in higher share of uniform prices within retailers (Ater & Rigbi, 2018; DellaVigna & Gentzkow, 2019) as well as in lower price rigidity (Böheim et al, 2021; Gorodnichenko & Talavera, 2017; Gorodnichenko et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Online markets are not necessarily more integrated than offline markets (Duch‐Brown et al, 2021) and costs of price adjustment still exist online (Böheim et al, 2021). As e‐commerce matures, however, markets seem to become more efficient, which manifests itself in higher share of uniform prices within retailers (Ater & Rigbi, 2018; DellaVigna & Gentzkow, 2019) as well as in lower price rigidity (Böheim et al, 2021; Gorodnichenko & Talavera, 2017; Gorodnichenko et al, 2014). For multichannel retailers, price differences across the channels are mostly driven by geographical price dispersion in their offline stores, and the share of uniform prices is higher if the product can be found on Amazon (Cavallo, 2017, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Same DNA, same location, same price? Price differences across distribution e‐channels of a single online retailer

Fedoseev

Fedoseeva

2022

Agribusiness

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Although price dispersion remains a prominent feature of international and domestic markets, the development of e-commerce has been increasingly promoting uniform pricing. Existing studies suggest that online competition, especially from Amazon, reduces price dispersion within individual retailer's chains and among stores in different chains. Although Amazon's effect on the rivals have been analyzed, little is known about its pricing across own distribution channels. Do pricing strategies differ among Amazon's online channels within a single geographical market? We use a large dataset on grocery price quotes from Amazon's main platform and its subsidiary Amazon Fresh in Berlin, Germany, to test whether those (both pure online) channels apply deviating pricing strategies. Our results indicate that Amazon's channels partially set unequal prices for overlapping parts of the assortment, focus on assortments with different average unit values, and vary in their application of price promotions.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Same DNA, same location, same price? Price differences across distribution e‐channels of a single online retailer

Fedoseev

Fedoseeva

2022

Agribusiness

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Successful retailer strategies in price comparison platforms

et al. 2021

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The choice of an appropriate e‐commerce strategy for the listing in price comparison platforms (eBay, Amazon, and price search engines) is crucial for the survival of online stores in B2C e‐commerce business. We use a comprehensive dataset from the Austrian price search engine geizhals.at to identify successful e‐commerce strategies with regard to these listing decisions. An e‐commerce strategy is a set of choices including the listing decision, availability decision, and decisions on a price path and shipping cost. We apply cluster analysis to identify the different strategies that have been used by online retailers. Using various success measures such as revenue, clicks, market share, and the survival of firms, as dependent variables in our regression analyses, we present causal evidence on the effectiveness of different e‐commerce strategies.

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The Impact of Price Adjustment Costs on Price Dispersion in E-Commerce

Cited by 2 publications

References 30 publications

Same DNA, same location, same price? Price differences across distribution e‐channels of a single online retailer

Same DNA, same location, same price? Price differences across distribution e‐channels of a single online retailer

Successful retailer strategies in price comparison platforms

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