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Working Paper Series, School of Economics and Finance, Queen Mary, University of London >
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http://hdl.handle.net/10419/55203
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| Title: | | Competition of e-commerce intermediaries  |
| Authors: | | Matros, Alexander Zapechelnyuk, Andriy |
| Issue Date: | | 2010 |
| Series/Report no.: | | Working Paper // School of Economics and Finance, Queen Mary, University of London 675 |
| Abstract: | | In e-commerce, where information collection is essentially costless and geographic location of traders matters very little, fierce competition between providers of similar services is expected. We consider a model where two e-commerce intermediaries (internet shops) compete for sellers. We show that two non-identical shops may coexist in equilibrium if the population of sellers is sufficiently differentiated in their time preferences. In such an equilibrium less patient sellers choose the more popular (with a higher rate of arrival of new buyers) and more expensive shop, while more patient sellers prefer the less popular and cheaper one. |
| Subjects: | | e-commerce intermediary competition listing fee closing fee |
| JEL: | | C73 D43 D82 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Paper Series, School of Economics and Finance, Queen Mary, University of London
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