Two kinds of online retailers' price competition on B2C market

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Abstract

Using game theory as research tool, this paper investigates deeply on price competition behavior between Multi-Channel Retailers (MCRs) and Pure Online Retailers (Dotcoms) on e-commerce market, elicits four kinds of market structures. Furthermore, it gives out perfect equilibrium prices as well as market scale under each condition of market structure. On this basis, two related propositions and two related conclusions are pointed out. First, it gets MCRs' and Dotcoms' critical prices. Secondly, as the penetrate rate of ebusiness increasing, two kind retailers' perfect prices will decrease, and there exists a stable relationship between the ratios of speed declining.

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APA

Fu, H., Ding, J., & Liu, L. (2007). Two kinds of online retailers’ price competition on B2C market. In IFIP Advances in Information and Communication Technology (Vol. 251 VOLUME 1, pp. 134–146). Springer New York LLC. https://doi.org/10.1007/978-0-387-75466-6_16

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