Abstract

Using data from three leading e-commerce platforms in China, we study the impact of the dispersion of sellers’ ranking positions on the price dispersion of homogeneous commodities. The major findings are as follows: The dispersion of the ranking positions of sellers weakens market competition and intensifies price dispersion. The dispersion of ranking positions has a heterogeneous effect on sellers’ pricing strategies with different ranking positions. In addition, under the combined action of search costs and long-tail effects in e-commerce markets, there is an invisible market boundary in online markets.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.