Electronic commerce, consumer search and retailing cost reduction

dc.contributor.authorMazón Calpena, Cristina
dc.contributor.authorPereira, Pedro
dc.descriptionJEL Classification: D43, D83, L13, L81, M31, O31, O33
dc.description.abstractThis 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.
dc.description.facultyFac. de Ciencias Económicas y Empresariales
dc.description.facultyInstituto Complutense de Análisis Económico (ICAE)
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dc.publisherInstituto Complutense de Análisis Económico
dc.relation.ispartofseriesUCM. Instituto Complutense de Análisis Económico. Documentos de trabajo
dc.rights.accessRightsopen access
dc.subject.keywordComercio electrónico
dc.subject.keywordCostes de producción
dc.subject.keywordCost Reduction
dc.subject.unesco5304.03 Comercio exterior
dc.titleElectronic commerce, consumer search and retailing cost reduction
dc.typetechnical report
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