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Electronic commerce, consumer search and retailing cost reduction

Mazón Calpena, Cristina and Pereira, Pedro (2001) Electronic commerce, consumer search and retailing cost reduction. [ UCM. Instituto Complutense de Análisis Económico. Documentos de trabajo; nº 02, 2001, ]

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Abstract

This paper explains four things in a unified way. First, how e-commerce can generate price
equilibria, where physical shops either compete with virtual shops for consumers with Internet
access, or alternatively, sell only to consumers with no Internet access. Second, how these price
equilibria might involve price dispersion on-line. Third, why prices may be higher on-line. Fourth,
why established firms can, but need not, be more reluctant than newly created firms to adopt ecommerce.
For this purpose we develop a model where e-commerce reduces consumers’ search
costs, involves trade-offs for consumers, and reduces retailing costs.

Se explica la competencia entre las tiendas físicas y las tiendas virtuales, concluyendose cómo el comercio electrónico reduce los costes de búsqueda de los consumidores, implica un "trade-off" para los consumidores, y disminuye los costes de producción de las empresas.


Item Type:Working Paper or Technical Report
Additional Information:

JEL Classification: D43, D83, L13, L81, M31, O31, O33

Uncontrolled Keywords:Comercio electrónico, Costes de producción, Electronic-Commerce, Search, Cost Reduction, Retailing
Subjects:Social sciences > Economics > Commerce
Series Name:UCM. Instituto Complutense de Análisis Económico. Documentos de trabajo
Volume:2001
Number:02
ID Code:6786
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Deposited On:30 Nov 2007
Last Modified:06 Feb 2014 07:51

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