Economics at your fingertips  

pricing on the internet

Michael Baye and John Morgan

from Palgrave Macmillan

Abstract: While many conjectured that the information-rich and frictionless nature of online markets would result in marginal cost pricing, this has proved not to be the case. Price dispersion online is ubiquitous. The main reason is that price discovery occurs through platforms that have an incentive to ensure that prices are dispersed so that information is valuable. We survey models of platform pricing and trace the impact of their decisions downstream to e-retailers. Finally, we highlight the connection between empirical findings and theory predictions for e-retail pricing.

Keywords: e-retail; internet; network effects; platform; pricing; price dispersion; two-sided market (search for similar items in EconPapers)
JEL-codes: D4 D8 L13 M3 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This item can be ordered from
http://www.dictionar ... lp/faq#_Toc198623697

Access Statistics for this chapter

More chapters in The New Palgrave Dictionary of Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sheeja Sanoj ( this e-mail address is bad, please contact ).

Page updated 2022-12-03
Handle: RePEc:pal:dofeco:v:7:year:2013:doi:3895