The Effect of Stock Market Dynamics on Internet Price Competition
研究构建模型分析纯网络零售商与混合零售商在定价目标上的差异，并利用打印机价格数据验证2000年互联网泡沫破裂后金融市场变化如何影响两类零售商的定价行为。
The authors' model of Internet pricing competition shows how differences in switching costs, increasing returns to scale, and discount rates between pure and hybrid e-tailers affected their choice of pricing objective. During the run-up of Internet stocks, differences in these determinants motivated pure e-tailers to build their customer base, whereas hybrid e-tailers leveraged their relationship with existing (offline) customers. In the resulting two-tiered pricing structure, pure e-tailers offered substantially lower prices than hybrid e-tailers. The dot.com crash of April 2000 increased the discount rate for pure e-tailers. Using a longitudinal database of printer prices, the authors' model correctly predicts changes in overall price dispersion and the direction and magnitude of price changes for pure and hybrid e-tailers associated with this change in the financial markets. This study illustrates how changes in financial markets can affect pricing competition among Internet retailers in a single category.