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Competition in B2C eCommerce: Analytical Issues and Empirical Evidence

Author

Listed:
  • Stefan W. Schmitz

    (ICE, Austrian Academy of Sciences)

  • Michael Latzer

    (ICE, Austrian Academy of Sciences)

Abstract

This paper questions the widely held view that B2C eCommerce markets are characterised by a high intensity of competition, using a mixture of theoretical arguments and empirical evidence. We discuss two hypothesis and survey empirical studies which test them. We argue that the goods sold in B2C eCommerce have to be interpreted as heterogeneous “composite goods”, that market transparency in B2C eCommerce is lower than widely assumed, and that high endogenous sunk costs limit the intensity of competition in B2C eCommerce.

Suggested Citation

  • Stefan W. Schmitz & Michael Latzer, 2002. "Competition in B2C eCommerce: Analytical Issues and Empirical Evidence," Industrial Organization 0211001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0211001
    Note: Type of Document - pdf; prepared on wordfile on mac; pages: 27; figures: none. Revised version submitted to Electronic Markets
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0211/0211001.pdf
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    References listed on IDEAS

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    1. repec:bla:jindec:v:50:y:2002:i:3:p:351-67 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Evert‐Jan Visser & Martin Lanzendorf, 2004. "Mobility And Accessibility Effects Of B2c E‐Commerce: A Literature Review," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(2), pages 189-205, April.
    2. Häring, Julia, 2003. "Different Prices for Identical Products? Market Efficiency and the Virtual Location in B2C E-Commerce," ZEW Discussion Papers 03-68, ZEW - Leibniz Centre for European Economic Research.
    3. Sunghan Ryu & Kees G. Koedijk & Victor Chow & Xiang Gao, 2024. "Environmental, Social, and Governance (ESG) for Online Marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-5, December.

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    • L - Industrial Organization
    • L - Industrial Organization

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