A Study of Pricing Evolution in the Online Toy Market

24 Pages Posted: 13 Dec 2010

See all articles by Zhenlin Yang

Zhenlin Yang

Singapore Management University

Lydia L. Gan

University of North Carolina at Pembroke; Medical Tourism Research Center

Fang-Fang Tang

National Policy Lab, China Center for Economic Research, National School of Development

Date Written: 2008

Abstract

We examine the pricing trends in the online toy markets by using panel data regression models with error components and serial correlation. Our results indicate that both online branch of multi-channel retailers (OBMCRS) and dotcoms charge similar prices on average, and that 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.

Keywords: E-commerce, online pricing strategies, online toy market, price dispersion, pricing trends

JEL Classification: L81, L11, L86

Suggested Citation

Yang, Zhenlin and Gan, Lydia L. and Gan, Lydia L. and Tang, Fang-Fang, A Study of Pricing Evolution in the Online Toy Market (2008). Economics Discussion Paper No. 2008-19, Available at SSRN: https://ssrn.com/abstract=1723637 or http://dx.doi.org/10.2139/ssrn.1723637

Zhenlin Yang (Contact Author)

Singapore Management University ( email )

School of Economics
90 Stamford Road
Singapore, 178903
Singapore
65 68280852 (Phone)
65 68280833 (Fax)

HOME PAGE: http://www.mysmu.edu/faculty/zlyang/

Lydia L. Gan

University of North Carolina at Pembroke ( email )

P.O. Box 1510
Pembroke, NC 28372-1510
United States
9107754265 (Phone)
9105216750 (Fax)

HOME PAGE: http://www.uncp.edu/business/

Medical Tourism Research Center ( email )

P O Box 1510
One University Drive
Pembroke, NC 28372
United States
910-521-6592 (Phone)
910-521-6750 (Fax)

HOME PAGE: http://www.uncp.edu/mtrc/

Fang-Fang Tang

National Policy Lab, China Center for Economic Research, National School of Development ( email )

China

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