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Does price converge on the internet? Evidence from the online DVD market

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  • Xiaolin Xing

Abstract

We compare pricing behaviours and market dynamics between online branches of traditional retailers and pure Internet retailers. Our results suggest that the two types of retailers not only will charge similar average prices in the long run, but also will have similar price dispersions. But we find no evidence of price convergence in the market. Brand names make significant differences in both price levels and price dispersions.

Suggested Citation

  • Xiaolin Xing, 2007. "Does price converge on the internet? Evidence from the online DVD market," Applied Economics Letters, Taylor & Francis Journals, vol. 15(1), pages 11-14.
    • Handle: RePEc:taf:apeclt:v:15:y:2007:i:1:p:11-14
    DOI: 10.1080/13504850600606042
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    References listed on IDEAS

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    1. Austan Goolsbee & Judith Chevalier, 2002. "Measuring Prices and Price Competition Online: Amazon and Barnes and Noble," NBER Working Papers 9085, National Bureau of Economic Research, Inc.
    2. Eric K. Clemons & Il-Horn Hann & Lorin M. Hitt, 2002. "Price Dispersion and Differentiation in Online Travel: An Empirical Investigation," Management Science, INFORMS, vol. 48(4), pages 534-549, April.
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    Cited by:

    1. Morgan, John & Ong, David & Zhong, Zemin (Zachary), 2018. "Location still matters: Evidence from an online shopping field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 43-54.

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