Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94969
Authors: 
Friberg, Richard
Ganslandt, Mattias
Sandström, Mikael
Year of Publication: 
2001
Series/Report no.: 
IUI Working Paper 559
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).
Subjects: 
Retail Pricing
Consumer Behavior
E-Commerce
Price Discrimination
JEL: 
D12
D43
L11
L81
Document Type: 
Working Paper

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