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A Study of Pricing Evolution in the Online Toy Market

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  • Yang, Zhenlin
  • Gan, Lydia
  • Tang, Fang-Fang

Abstract

We examine the pricing trends in the online toy markets by using panel data regression models with error components and serial correlation. Our results indicate that both online branch of multi-channel retailers (OBMCRS) and dotcoms charge similar prices on average, and that over time their prices move in tandem. Although the OBMCR retailers charge significantly different prices, the dotcoms do charge similar prices. Moreover, both retailer types demonstrate different magnitudes of price dispersion that move at different rates over time. Although the price dispersion of OBMCRS is higher than that of the dotcoms at the beginning, the gap narrows over time.

Suggested Citation

  • Yang, Zhenlin & Gan, Lydia & Tang, Fang-Fang, 2008. "A Study of Pricing Evolution in the Online Toy Market," Economics Discussion Papers 2008-19, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:7264
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    References listed on IDEAS

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    More about this item

    Keywords

    E-commerce; online pricing strategies; online toy market; price dispersion; pricing trends;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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