PRICE DYNAMICS AND SHAKE-OUTS IN ELECTRONIC MARKETS

Pedro Pereira

Economics Working Papers from Universidad Carlos III, Departamento de Economía

Abstract: This paper presents a model that explains the recent evolution of e-commerce, where over time, prices can increase if no exit occurs, or decrease, if exit occurs. In the model there is uncertainty about the firms’ costs, because the technology is new, and consumers face a switching cost, because it is easier to observe the current price of a previous supplier, than the price of other firms.

Date: 2001-12

Downloads: (external link)
http://docubib.uc3m.es/WORKINGPAPERS/WE/we016823.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cte:werepe:we016823

Access Statistics for this paper

More papers in Economics Working Papers from Universidad Carlos III, Departamento de Economía
Contact information at EDIRC.
Series data maintained by ().