Competitiveness and Price Convergence on the Internet: Evidence from the Online DVD Market

• Main Authors: XING, Xiaolin, TANG, Fang Fang, YANG, Zhenlin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2003
• Subjects: Online Market; Dotcom; Multi-Channel Retailer; Pricing; Price Convergence; Competitive Market; E-Commerce; Econometrics; Industrial Organization
• Online Access: https://ink.library.smu.edu.sg/soe_research/1185; https://ink.library.smu.edu.sg/context/soe_research/article/2184/viewcontent/DVDprice_YZL.pdf
• Institution: Singapore Management University

We compare the pricing behavior between online branches of traditional retailers (MCR) and pure Internet retailers (Dotcom) in the DVD market. Based on a set of panel data from July 5, 2000 to June 11, 2001, we find that the average price of the MCRs is about 11.2% higher than that of the Dotcoms. F...