Beyond the Hype of Frictionless Markets: Evidence of Heterogeneity in Price Rigidity on the Internet

• Main Authors: Bergen, M., KAUFFMAN, Robert John, Lee, D.W.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Bookselling; E-commerce; Economic analysis; Empirical research; Empirical regularities; Internet retailing; Price rigidity; Strategic pricing; Numerical Analysis and Scientific Computing
• Online Access: https://ink.library.smu.edu.sg/sis_research/2837
• Institution: Singapore Management University

We explore daily patterns of Internet pricing for the two major retailers, Amazon.com and Barnes and Noble (BN). using data on 377 books collected over a 449-day period in 2003-4. We frame this investigation in terms of a key question; How rigid are prices on the Internet? Are there reasons to sugge...