A Study of Pricing Evolution in the Online Toy Market
24 Pages Posted: 13 Dec 2010
Date Written: 2008
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: Suggested Citation