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On the Diffusion of Electronic Commerce

Author

Listed:
  • Emin M. Dinlersoz

    (University of Houston)

  • Pedro Pereira

    (Autoridade da Concorrência)

Abstract

This paper analyzes retailers’ adoption of e-commerce in a technology adoption race framework. An Internet-based firm with no traditional market presence competes with an established traditional firm to adopt the e-commerce technology and sell to a growing number of consumers with on-line shopping capability. The focus of the analysis is on identifying how consumer loyalty, differences in firms’ technology and consumers’ preferences across the traditional versus the virtual market, and expansion in market size made possible by the Internet can affect the timing and sequence of adoption by firms, as well as the post-adoption evolution of prices. The model’s implications are used to discuss empirical evidence on adoption patterns across different product categories and firm types.

Suggested Citation

  • Emin M. Dinlersoz & Pedro Pereira, 2006. "On the Diffusion of Electronic Commerce," Working Papers 13, Portuguese Competition Authority.
    • Handle: RePEc:pca:wpaper:13
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    File URL: http://www.concorrencia.pt/download/WP13_difecom_feb06.pdf
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    Cited by:

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    2. Vladimirov, Zhelyu & Simeonova-Ganeva, Ralitsa & Ganev, Kaloyan, 2012. "Interaction of leading and supporting factors for the SME competitiveness," MPRA Paper 37251, University Library of Munich, Germany.
    3. Oksana Loginova, 2007. "Real and Virtual Competition," Working Papers 0715, Department of Economics, University of Missouri.
    4. Yijuan Chen & Xiangting Hu & Sanxi Li, 2022. "Complementarity between online and offline channels for quality signaling," Journal of Economics, Springer, vol. 135(1), pages 49-74, January.
    5. Oksana Loginova, 2009. "Real And Virtual Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 57(2), pages 319-342, June.
    6. Emin M. Dinlersoz & Ruben Hernandez-Murillo, 2004. "The diffusion of electronic business in the U.S," Working Papers 2004-009, Federal Reserve Bank of St. Louis.
    7. Milliou, Chrysovalantou & Petrakis, Emmanuel, 2011. "Timing of technology adoption and product market competition," International Journal of Industrial Organization, Elsevier, vol. 29(5), pages 513-523, September.
    8. Oksana Loginova & X. Hnery Wang, 2010. "Customization in an Endogenous-Timing Game with Vertical Differentiation," Working Papers 1008, Department of Economics, University of Missouri.
    9. Emin M. Dinlersoz & Ruben Hernandez-Murillo, 2005. "The diffusion of electronic business in the United States," Review, Federal Reserve Bank of St. Louis, vol. 87(Jan), pages 11-34.
    10. Bourreau, Marc & Manenti, Fabio M., 2023. "Selling cross-border in online markets: The impact of the ban on geoblocking strategies," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    11. Loginova, Oksana & Wang, X. Henry, 2013. "Mass customization in an endogenous-timing game with vertical differentiation," Economic Modelling, Elsevier, vol. 33(C), pages 164-173.
    12. García-Gallego Aurora & Georgantzís Nikolaos & Pereira Pedro & Pernías-Cerrillo José C., 2016. "Bias and Size Effects of Price-Comparison Platforms: Theory and Experimental Evidence," Review of Network Economics, De Gruyter, vol. 15(1), pages 1-34, March.
    13. Martin, Ludivine, 2009. "Understanding the implementation of e-business strategies: Evidence from Luxembourg," MPRA Paper 13645, University Library of Munich, Germany.
    14. Chen, Yijuan & Hu, Xiangting & Li, Sanxi, 2017. "Quality differentiation and firms’ choices between online and physical markets," International Journal of Industrial Organization, Elsevier, vol. 52(C), pages 96-132.
    15. Basharat Ali & Nazim Baluch & Zulkifli Mohamed Udin, 2015. "The Moderating Effect of Religiosity on the Relationship between Trust and Diffusion of Electronic Commerce," Modern Applied Science, Canadian Center of Science and Education, vol. 9(13), pages 176-176, December.
    16. Chen, Pu & Chen, Yijuan & Hu, Xiangting & Li, Sanxi, 2015. "Can online markets attract high-quality products?," Economic Modelling, Elsevier, vol. 51(C), pages 65-71.

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