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The equity implications of e‐commerce: A note

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  • Konstantinos Eleftheriou
  • Michael L. Polemis

Abstract

We develop a simple model with heterogeneous agents and search frictions to study how increases in matching intensity between buyers and retailers as a result of e‐commerce determine the level of income inequality among retailers. Our findings indicate that a reduction in search frictions leads to higher inequality and induces buyers to purchase goods and services only from specialized retailers.

Suggested Citation

  • Konstantinos Eleftheriou & Michael L. Polemis, 2019. "The equity implications of e‐commerce: A note," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(5), pages 515-519, July.
    • Handle: RePEc:wly:mgtdec:v:40:y:2019:i:5:p:515-519
    DOI: 10.1002/mde.3020
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