Abstract
The arguments seem clear: When e-commerce customers shop by mouse click, they can compare the prices of the various online suppliers much more quickly than conventional buyers. Market transparency increases. This intensifies interfirm competition, which then leads to lower prices. The price pressure could spill over from the Internet to conventional channels. However, there is another side to the story of Internet bargain hunting. The market not only becomes more transparent for buyers but also — and maybe to a much greater extent — for sellers. And even if market power does not shift in favor of businesses, online prices can still be higher; if Internet channels offer the customer more value, he will be prepared to pay a higher price. It is therefore by no means clear how e-commerce will affect prices in the long term.
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Jäcker, C. (2003). E-Commerce: A Paradise for Bargain Hunters?. In: Barfield, C.E., Heiduk, G., Welfens, P.J.J. (eds) Internet, Economic Growth and Globalization. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24761-6_7
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DOI: https://doi.org/10.1007/978-3-540-24761-6_7
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