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On the Diffusion of Electronic Commerce

Emin Dinlersoz () and Pedro Pereira

No 13, Working Papers from Portuguese Competition Authority

Abstract: This paper analyzes retailers’ adoption of e-commerce in a technology adoption race framework. An Internet-based firm with no traditional market presence competes with an established traditional firm to adopt the e-commerce technology and sell to a growing number of consumers with on-line shopping capability. The focus of the analysis is on identifying how consumer loyalty, differences in firms’ technology and consumers’ preferences across the traditional versus the virtual market, and expansion in market size made possible by the Internet can affect the timing and sequence of adoption by firms, as well as the post-adoption evolution of prices. The model’s implications are used to discuss empirical evidence on adoption patterns across different product categories and firm types.

Pages: 44 pages
Date: 2006-11
New Economics Papers: this item is included in nep-ict, nep-ino, nep-mic and nep-mkt
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http://www.concorrencia.pt/download/WP13_difecom_feb06.pdf First version, 2006 (application/pdf)
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Journal Article: On the diffusion of electronic commerce (2007) Downloads
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