Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

Hu Wang, Di Li and Changbin Jiang

Managerial and Decision Economics, 2023, vol. 44, issue 2, 1125-1141

Abstract: It is theoretical and managerial significant to explore the determinants of retailers' decisions between a combined price structure and a partitioned price structure and the effect of their decisions on a manufacturer's product sales in competitive markets. Based on the structure–conduct–performance framework, we reveal that market structure‐related characteristics, such as the number of retailers, the degree of retailer differentiation, whether a dominant retailer in the market, and the number of product substitutes, significantly affect retailers' price structure decisions. Furthermore, more retailers adopting a combined price structure decrease the product sales, although the size of retailers mitigates this effect.

Date: 2023
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https://doi.org/10.1002/mde.3737

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:44:y:2023:i:2:p:1125-1141

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