Zhenlin Yang (School of Economics and Social Sciences, Singapore Management University, Singapore) Lydia Gan (Division of Economics,School of Humanities and Social Sciences, Nanyang Technological University, Singapore) Fang-Fang Tang (Department of Marketing, Faculty of Business Administration, Chinese University of Hong Kong, Hong Kong)
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We examine the pricing trends in the online toy markets based on a unique set of panel data collected across three years’ span. The analysis was made through panel data regression models with error components and serial correlation, allowing comparisons of prices and price dispersions between the two types of online retailers as well as examinations of dynamics of prices and price dispersions. Our results indicate that both online branch of multichannel retailers (OBMCRS) and dotcoms charge similar prices on average, and over time their prices move in tandem. Although the OBMCR retailers charge significantly different prices, the dotcoms do charge similar prices. Moreover, both retailer types demonstrate different magnitudes of price dispersion that move at different rates over time. Although the price dispersion of OBMCRS is higher than that of the dotcoms at the beginning, the gap narrows over time.
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Paper provided by Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre in its series Economic Growth centre Working Paper Series with number
0704.
Find related papers by JEL classification: L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Michael R. Baye & John Morgan & Patrick Scholten, 2006.
"Persistent Price Dispersion in Online Markets,"
Working Papers
2006-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
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