Is the Internet making markets more efficient? The evidence according to price indicators in Spain
It has been theorized that low search costs associated with e-commerce imply greater levels of efficiency relative to the conventional retail channels. Multiple empirical studies confirm this hypothesis concerning price level, although the evidence is mixed relative to price dispersion. This article...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | Catalan |
| Published: |
OmniaScience
2009-04-01
|
| Series: | Intangible Capital |
| Subjects: | |
| Online Access: | http://www.intangiblecapital.org/index.php/ic/article/view/107 |
| _version_ | 1818240624195796992 |
|---|---|
| author | Ferran Sabate Antonio Cañabate Erik Cobo Dominie Garcia |
| author_facet | Ferran Sabate Antonio Cañabate Erik Cobo Dominie Garcia |
| author_sort | Ferran Sabate |
| collection | DOAJ |
| description | It has been theorized that low search costs associated with e-commerce imply greater levels of efficiency relative to the conventional retail channels. Multiple empirical studies confirm this hypothesis concerning price level, although the evidence is mixed relative to price dispersion. This article empirically compares the efficiency of the Internet with the conventional retail channel through 4 price indicators for the CD market. The results, based on 1,603 prices collected in Spain, are surprising. The conventional channel shows greater efficiency for both posted and final prices. These findings together with the coincident results of other reviewed studies would suggest key factors related to the development of e-commerce. Implications of the study and future considerations are discussed. |
| first_indexed | 2024-12-12T13:16:24Z |
| format | Article |
| id | doaj.art-0b4c368aa2c345cc955769e4fab122ac |
| institution | Directory Open Access Journal |
| issn | 1697-9818 |
| language | Catalan |
| last_indexed | 2024-12-12T13:16:24Z |
| publishDate | 2009-04-01 |
| publisher | OmniaScience |
| record_format | Article |
| series | Intangible Capital |
| spelling | doaj.art-0b4c368aa2c345cc955769e4fab122ac2022-12-22T00:23:24ZcatOmniaScienceIntangible Capital1697-98182009-04-015212515110.3926/ic.107133Is the Internet making markets more efficient? The evidence according to price indicators in SpainFerran Sabate0Antonio Cañabate1Erik Cobo2Dominie Garcia3Technical University of Catalonia (Universitat Politecnica de Catalunya) (UPC)Technical University of Catalonia (Universitat Politecnica de Catalunya) (UPC)Technical University of Catalonia (Universitat Politecnica de Catalunya) (UPC)San José State UniversityIt has been theorized that low search costs associated with e-commerce imply greater levels of efficiency relative to the conventional retail channels. Multiple empirical studies confirm this hypothesis concerning price level, although the evidence is mixed relative to price dispersion. This article empirically compares the efficiency of the Internet with the conventional retail channel through 4 price indicators for the CD market. The results, based on 1,603 prices collected in Spain, are surprising. The conventional channel shows greater efficiency for both posted and final prices. These findings together with the coincident results of other reviewed studies would suggest key factors related to the development of e-commerce. Implications of the study and future considerations are discussed.http://www.intangiblecapital.org/index.php/ic/article/view/107Search costPricingInternet retailers marketingICT |
| spellingShingle | Ferran Sabate Antonio Cañabate Erik Cobo Dominie Garcia Is the Internet making markets more efficient? The evidence according to price indicators in Spain Intangible Capital Search cost Pricing Internet retailers marketing ICT |
| title | Is the Internet making markets more efficient? The evidence according to price indicators in Spain |
| title_full | Is the Internet making markets more efficient? The evidence according to price indicators in Spain |
| title_fullStr | Is the Internet making markets more efficient? The evidence according to price indicators in Spain |
| title_full_unstemmed | Is the Internet making markets more efficient? The evidence according to price indicators in Spain |
| title_short | Is the Internet making markets more efficient? The evidence according to price indicators in Spain |
| title_sort | is the internet making markets more efficient the evidence according to price indicators in spain |
| topic | Search cost Pricing Internet retailers marketing ICT |
| url | http://www.intangiblecapital.org/index.php/ic/article/view/107 |
| work_keys_str_mv | AT ferransabate istheinternetmakingmarketsmoreefficienttheevidenceaccordingtopriceindicatorsinspain AT antoniocanabate istheinternetmakingmarketsmoreefficienttheevidenceaccordingtopriceindicatorsinspain AT erikcobo istheinternetmakingmarketsmoreefficienttheevidenceaccordingtopriceindicatorsinspain AT dominiegarcia istheinternetmakingmarketsmoreefficienttheevidenceaccordingtopriceindicatorsinspain |