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Pricing Strategies in E-Commerce: Bricks vs. Clicks

Abstract
What is the impact of the increasing dominance of conventional firms in e-commerce? We use a simple model to show that retailers who only sell through Internet have lower on-line prices than retailers who also sell through conventional stores. This proposition is firmly supported by our empirical analysis which uses a rich data set covering the Swedish markets for books and CDs. On average, prices of these goods are 15 percent cheaper on Internet, but if a single item is bought transport costs will make it as expensive to buy over Internet as in a conventional store (if a basket of goods is bought it is some 10 percent cheaper on Internet since transport costs are fixed).. Retail Pricing; Consumer Behavior; E-Commerce; Price Discrimination

Details der Publikation
Download http://www.naringslivsforskning.se/Wfiles/wp/WP559.pdf
Archiv RePEc (Germany)
Typ preprint

Literaturangaben in der Publikation (4)
The Emerging Landscape for Retail E-Commerce (2000)
Frictionless Commerce? - A Comparison of Internet and Conventional Retailers (1999)
Durable Goods Monopoly and Product Quality
Understanding Digital Markets: Review And Assessment (2000)