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The Determinants Of Online Merchant’s Price Premium: Evidence From Russia

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  • Evgeny A. Antipov

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    (National Research University Higher School of Economics)

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    Abstract

    Some Internet stores manage to charge prices that are significantly higher than market averages, therefore, obtaining some sort of price premium. This paper is dedicated to building a model that can be used to explain and predict a typical price premium that an Internet store charges for a specific product based on the information about the characteristics of the store and the features of the market for this product. Such models can provide support for pricing and assortment decisions: in particular, they allow detecting products that a store is likely to sell with the highest or the lowest markup based on price premia that are charged by stores with similar characteristics on similar markets

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    File URL: http://www.hse.ru/data/2014/03/24/1318168807/19MAN2014.pdf
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    Bibliographic Info

    Paper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 19/MAN/2014.

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    Length: 10 pages
    Date of creation: 2014
    Date of revision:
    Publication status: Published in WP BRP Series: Management / MAN, March 2014, pages 1-10
    Handle: RePEc:hig:wpaper:19man2014

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    Related research

    Keywords: hierarchical linear modeling; e-Commerce; price dispersion;

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    1. Eric K. Clemons & Il-Horn Hann & Lorin M. Hitt, 2002. "Price Dispersion and Differentiation in Online Travel: An Empirical Investigation," Management Science, INFORMS, vol. 48(4), pages 534-549, April.
    2. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
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