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A Study of Pricing Evolution in the Online Toy Market

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Zhenlin Yang & Lydia Gan & Fang-Fang Tang, 2007. "A Study of Pricing Evolution in the Online Toy Market," Economic Growth Centre Working Paper Series 0704, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:0704
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    e-commerce; online pricing strategies; online toy market; price dispersion; pricing trends;
    All these keywords.

    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

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