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Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

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  • Hu Wang
  • Di Li
  • Changbin Jiang

Abstract

It is theoretical and managerial significant to explore the determinants of retailers' decisions between a combined price structure and a partitioned price structure and the effect of their decisions on a manufacturer's product sales in competitive markets. Based on the structure–conduct–performance framework, we reveal that market structure‐related characteristics, such as the number of retailers, the degree of retailer differentiation, whether a dominant retailer in the market, and the number of product substitutes, significantly affect retailers' price structure decisions. Furthermore, more retailers adopting a combined price structure decrease the product sales, although the size of retailers mitigates this effect.

Suggested Citation

  • Hu Wang & Di Li & Changbin Jiang, 2023. "Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1125-1141, March.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:1125-1141
    DOI: 10.1002/mde.3737
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