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Proceedings of the 38th Annual Hawaii International Conference on System Sciences (HICSS'05) - Track 8
Big Island, Hawaii
January 03-January 06
ISBN: 0-7695-2268-8
Mark Bergen, University of Minnesota, Minneapolis
Robert J. Kauffman, University of Minnesota, Minneapolis
Dongwon Lee, University of Minnesota, Minneapolis
We explore daily patterns of Internet pricing for the two major Internet retailers, Amazon.com and BarnesandNoble.com, using data on 377 books collected over a 449-day period in 2003-2004. We frame this investigation in terms of a key question: How rigid are prices on the Internet? Internet retailers, in contrast with traditional firms, adjust prices any day of the week throughout the year; firms' price adjustments for books occur less frequently than daily-every 90 days on average; price change activity varies by book category, from a high of one change on average every 61 days for best-sellers to a low of one change every 184 days on average for steadysellers; and, Amazon changes prices less frequently than BN. The former changes book prices every 222 days and the latter every 56 days on average.
Index Terms:
Bookselling, e-commerce, economic analysis, Internet retailing, price rigidity, strategic pricing
Citation:
Mark Bergen, Robert J. Kauffman, Dongwon Lee, "How Rigid Are Prices in E-Commerce? An Analysis of Daily Price Change Activity in Internet Retailing," hicss, vol. 8, pp.213c, Proceedings of the 38th Annual Hawaii International Conference on System Sciences (HICSS'05) - Track 8, 2005
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