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Price Dispersion on the Internet: A Review and Directions for Future ResearchXing PanIndiana University Bloomington - Department of Marketing Brian T. RatchfordUniversity of Texas at Dallas Venkatesh ShankarTexas A&M University - Department of Marketing October 2003 Abstract: The explosive growth in Internet retailing has sparked a stream of research on online price dispersion, defined as the distribution of prices (such as range and standard deviation) of an item with the same measured characteristics across sellers of the item at a given point in time. In this paper, we review the empirical and analytical literature on online price dispersion and outline the future directions in this research stream. We address the issue of whether price dispersion is greater or smaller online than offline, examine whether price dispersion on the Internet has changed over time, discuss multichannel retailing and measurement of price dispersion, explore why Internet price dispersion exists, and examine the drivers of online price dispersion.
Number of Pages in PDF File: 31 Keywords: Price Dispersion, E-commerce, Internet, Retailing, Information Economics working papers seriesDate posted: January 13, 2004Suggested CitationContact Information
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