Different Prices for Identical Products, Market Efficiency and the Virtual Location in B2C E-Commerce


Häring, Julia


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URL: http://ub-madoc.bib.uni-mannheim.de/132
URN: urn:nbn:de:bsz:180-madoc-1322
Document Type: Working paper
Year of publication: 2003
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L11 D43 L81 C23 ,
Subject headings (SWD): Markteffizienz , Electronic Commerce
Abstract: This paper analyses market efficiency and the role of the virtual location in digital markets using a data set containing more than 23,000 price observations from the online market for contact lenses as well as detailed information about online retailer and product characteristics. The data allow to implement and test the concept of virtual location. The empirical results reveal evidence for lower prices and less price dispersion among e-retailers in comparison to hybrid retailers, which supports the hypothesis of enhanced market efficiency in electronic markets. Furthermore, the results show that an online shops virtual location influences its prices and that differences in prices are partially driven by differentiation in retailer service. A decomposition of the price differential reveals that there may indeed be a competition effect.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Häring, Julia (2003) Different Prices for Identical Products, Market Efficiency and the Virtual Location in B2C E-Commerce. Open Access [Working paper]
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