Price Setting in Online Markets: Does IT Click?

We document basic facts about prices in online markets in the United States and Canada, which is a rapidly growing segment of the retail sector. Relative to prices in regular stores, prices in online markets are more flexible and exhibit stronger pass-through (60–75 percent) and faster convergence (half-life less than two months) in response to movements of the nominal exchange rate. Multiple margins of adjustment are active in the process of responding to nominal exchange rate shocks. Properties of goods, sellers, and markets are systematically related to pass-through and the speed of price adjustment for international price differentials. (JEL F31, F41, L11, L81)

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Bargaining and Fixed Price Offers: How Online Intermediaries are Changing New Car Transactions

Review of Network Economics ◽

10.2202/1446-9022.1114 ◽

2007 ◽

Vol 6 (2) ◽

Cited By ~ 2

Author(s):

Michael A. Arnold ◽

Thierry Pénard

Keyword(s):

Price Competition ◽

Search Costs ◽

Empirical Literature ◽

Price Setting ◽

Online Markets ◽

Automobile Market ◽

Fixed Price ◽

Setting Process ◽

The Impact

This paper develops a model of oligopolistic price competition to analyze the impact of online intermediaries such as Autobytel.com on the price setting process in the automobile market. The roles of dealer search costs, the fraction of buyers using the intermediary, the value of the item being sold, and heterogeneity in buyer bargaining abilities are explored. The model provides theoretical insights relevant to the empirical literature addressing the role that intermediaries like Autobytel play in online markets. For example, we present conditions under which the price offered through the intermediary is either higher or lower than offline (bargained) prices.

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Price Setting in Online Markets: Does IT Click?

Journal of the European Economic Association ◽

10.1093/jeea/jvx050 ◽

2018 ◽

Vol 16 (6) ◽

pp. 1764-1811 ◽

Cited By ~ 8

Author(s):

Yuriy Gorodnichenko ◽

Viacheslav Sheremirov ◽

Oleksandr Talavera

Keyword(s):

Price Setting ◽

Online Markets

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Price setting in the argentine and colombian manufacturing industry

10.32468/be.90 ◽

1998 ◽

Author(s):

Juan Carlos Echeverry

Keyword(s):

Manufacturing Industry ◽

Price Setting

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Past and Present Price Setting in China: The Case of Agriculture

Chinese Economic Studies ◽

10.2753/ces1097-1475240417 ◽

1991 ◽

Vol 24 (4) ◽

pp. 17-27

Author(s):

Zhong Yu

Keyword(s):

Price Setting

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Contract Growing for the Export-oriented Cut Flowers Industry in Turkey

HortScience ◽

10.21273/hortsci.33.3.531a ◽

1998 ◽

Vol 33 (3) ◽

pp. 531a-531 ◽

Cited By ~ 2

Author(s):

Robin G. Brumfield ◽

Burhan Ozkan ◽

Osman Karagüzel

Keyword(s):

Performance Indicators ◽

Price Setting ◽

Production Structure ◽

Cut Flower ◽

Cut Flowers ◽

Product Price ◽

Plant Materials ◽

Flower Production ◽

Specific Performance ◽

Insight Into

Thirty cut flower businesses were surveyed in 1997 to examine the production structure and main problems of export-oriented contract growing in Turkey. The survey was conducted in Antalya province, which is the center of export-oriented cut flower production in Turkey. The results of the research provided insight into how Turkish cut flower-contracted growers were managing some of the key areas of their operations. The study also provided the opportunity for growers to highlight their concerns about contract growing for export-oriented cut flower production. The survey showed that contract growers do not use specific performance indicators relevant to cut flower production. The product price received by the contract growers was determined by the export companies. These export companies receive flowers from growers mainly on consignment. After exporting the products, exporters periodically pay the grower, subtracting a commission for their services and other marketing expenses. Contract growers are essentially price takers in the transactions. The business procedure from production to price setting and marketing was not in the hands of the contract growers. Therefore, the trading risks are essentially borne by the contract growers. The main concerns raised by contract growers were the current consignment system, cost of the plant materials, and the late payment for the sold products.

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