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Pricing Strategies in the Electronic Marketplace

Chapter
Part of the Progress in IS book series (PROIS)

Abstract

In this chapter, I review prices and firms’ pricing strategies on the Internet through a broad survey of recent literatures on economics, information system, and marketing. In both empirical and theoretical studies, I carefully identify two causes of price dispersion, a pervasive and persistent phenomenon observed in many homogenous product markets: market friction and product differentiation. In experimental studies, I document pricing strategies arising from both laboratory and field experiments. Finally, recent studies of online pricing issues using international data are also exposited.

Keywords

Pricing strategies Price dispersion Market friction Product differentiation 

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© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Department of EconomicsIllinois State UniversityIllinoisUSA

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