Price Dispersion on the Internet: A Review and Directions for Future Research

31 Pages Posted: 13 Jan 2004  

Xing Pan

Independent

Brian T. Ratchford

University of Texas at Dallas

Venkatesh Shankar

Texas A&M University - Department of Marketing

Date Written: 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.

Keywords: Price Dispersion, E-commerce, Internet, Retailing, Information Economics

Suggested Citation

Pan, Xing and Ratchford, Brian T. and Shankar, Venkatesh, Price Dispersion on the Internet: A Review and Directions for Future Research (October 2003). Available at SSRN: https://ssrn.com/abstract=485863 or http://dx.doi.org/10.2139/ssrn.485863

Xing Pan (Contact Author)

Independent

No Address Available

Brian T. Ratchford

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Venkatesh Shankar

Texas A&M University - Department of Marketing ( email )

430 Wehner
College Station, TX 77843-4218
United States

HOME PAGE: http://www.venkyshankar.com

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