French E-commerce sales have tremendously grown these last two years, even if the estimated amount of transaction is still marginal. Beyond this relative success, E-commerce raises many questions. Are electronic markets more competitive than traditional markets? Are supply strategies specific on the Internet? This paper attempts to scrutinize the pricing policy of on-line retailers, focusing on the CD market. For this purpose, we collected data about CD prices on Internet during June and July 2001. This data set enables us to establish that online prices are strongly dispersed and rather volatile. Then we proceed to econometric tests to identify the drivers of price level and price dispersion on the Internet. These tests enable us to sketch a typology of online supply strategies.
Larribeau, Sophie and Penard, Thierry
"Que peut-on dire des stratégies tarifaires sur Internet ? Une étude économétrique sur la vente en ligne de CD en France,"
Systèmes d'Information et Management:
3, Article 3.
Available at: http://aisel.aisnet.org/sim/vol8/iss3/3