Follow the leader: Price change timing in internet-based selling

Managerial and Decision Economics

Volumn 28, Issue 7, 2007, Pages 679-700

  Kauffman, Robert J ^a   Wood, Charles A ^b  

^a ARIZONA STATE UNIVERSITY   (United States)

^b UNIVERSITY OF NOTRE DAME   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 35748969332     PISSN: 01436570     EISSN: 10991468     Source Type: Journal    
DOI: 10.1002/mde.1375     Document Type: Review

References (60)

1. Akerlof GA. 1970. The market for 'lemons': quality uncertainty and the market mechanism. Quarterly Journal of Economics 84(3): 488-500.
2. Allen GA, Wu J. 2002. Shopbot market representativeness and its implications in Internet research. Presented at the 2002 Workshop on Information Systems and Economics (WISE), Barcelona, Spain.
3. Andersen TM. 1994. Price Rigidity: Causes and Macroeconomic Implications. Clarendon Press: Oxford.
4. Ariely D, Simonson I. 2003. Buying, bidding, playing, or competing? Value assessment and decision dynamics in online auctions. Journal of Consumer Psychology 13(1-2): 113-123.
5. Arize AC, Malindretos J, Obi ZI. 2002. Long and shortterm interest rates in 19 countries: tests of cointegration and parameter instability. Atlantic Economic Journal 30(2): 105-120.
6. Bailey JP. 1998. Intermediation and electronic markets: aggregation and pricing in Internet commerce. Ph.D. Dissertation, Program in Technology, Management and Policy, MIT, Cambridge, MA.
7. Bajari P, Hortacsu A. 2003. The winner's curse, reserve prices and endogenous entry: empirical insights from eBay auctions. Rand Journal of Economics 34(2): 329-355.
8. Bakos JY. 1991. A strategic analysis of electronic marketplaces. MIS Quarterly 15(3): 295-310.
9. Bakos JY. 1997. Reducing buyer search costs: implications for electronic marketplaces. Management Science 43(12): 1676-1692.
10. Bapna R, Goes P, Gupta A. 2000. A theoretical and empirical investigation of multi-item online auctions. Information Technology and Management 1(1-2): 1-23.
11. Bergen M, Kauffman RJ, Lee D. 2005. Beyond the hype of frictionless markets: evidence of heterogeneity in price rigidity on the Internet. Journal of Management Information Systems 22(2): 57-89.
12. Blattberg RC, Wisniewski KJ. 1989. Price-induced patterns of competition. Marketing Science 8(4): 291-299.
13. Blinder AS, Canetti ERD, Lebow DE, Rudd JB. 1998. Asking About Prices: A New Approach to Understanding Price Stickiness. Russell Sage Foundation: New York.
14. Brynjolfsson E, Smith M. 2000. Frictionless commerce? A comparison of Internet and conventional retailers. Management Science 46(4): 563-585.
15. Campbell C, Ray G, Muhanna WA. 2005. Search and collusion in electronic markets. Management Science 51(3): 497-507.
16. Carpenter GS, Cooper LG, Hanssens DM, Midgley DF. 1988. Modeling asymmetric competition. Marketing Science 7(4): 393-412.
17. Cecchetti SG. 1986. The frequency of price adjustment: a study of the newsstand prices of magazines. Journal of Econometrics 31: 255-274.
18. Chakrabarti R, Scholnick B. 2007. The mechanics of price adjustment: new evidence on the (un)importance of menu costs. Managerial and Decision Economics 28: 657-668.
19. Chevalier JA, Kashyap AK, Rossi PE. 2003. Why don't prices rise during periods of peak demand? Evidence from scanner data. American Economic Review 93(1): 15-37.
20. Choudhury V, Hartzel KS, Konsynski BR. 1998. Uses and consequences of electronic markets: an empirical investigation in the aircraft parts industry. MIS Quarterly 22(4): 471-507.
21. Clay K, Ouyang S, Smith M, Wolff E. 2003. Leaderfollower behavior on the web? Evidence from online book markets. Presented at Firm Behavior and the Internet Economy, Allied Social Science Association/American Economic Association, Washington, DC.
22. Clemons EK, Hann I, Hitt LM. 2002. Price dispersion and differentiation in online travel: an empirical investigation. Management Science 48(4): 534-549.
23. Cortese AE. 1998. Good-bye to fixed pricing? How electronic markets could create the most efficient market of them all. Business Week 3576: 70.
24. Dickey D, Fuller WA. 1979. Distribution of the estimates for autoregressive time series with a unit root. Journal of the American Statistical Association 74(366): 427-431.
25. Dillard M. 1999. The economics of electronic markets: a study of online and physical bookstores, B.A. Honors Thesis, University of California, Berkeley, CA.
26. Dutta S, Bergen M, Levy D. 2002. Price flexibility in channels of distribution: evidence from scanner data. Journal of Economic Dynamics and Control 26(11): 1845-1900.
27. Easley RF, Tenorio R. 2004. Jump bidding strategies in Internet auctions. Management Science 50(10): 1407-1419.
28. Enders W. 1995. Applied Econometric Time Series. Wiley: New York.
29. Friedman JW. 1977. Oligopoly and the Theory of Games. North-Holland: Amsterdam, Netherlands.
30. Gately G. 1999. Online book price war worries wall street. Electronic Markets Times, www.ecommercetimes.com/news/articles/990518-1.shtml.
31. Harrington J. 2001. Comment on 'Reducing buyer search costs: implications for electronic marketplaces.' Management Science 47(12): 1727-1732.
32. Kashyap AK. 1995. Sticky prices: new evidence from retail catalogs. Quarterly Journal of Economics 110(1): 245-274.
33. Kauffman RJ, Lee D. 2004. Should we expect less price rigidity in the digital economy? In Proceedings of the 37th Hawaii International Conference on System Sciences, Sprague R (ed.). IEEE Computer Society Press: Kona, HI, Los Alamitos, CA.
34. Kauffman RJ, Wood CA. 2007. Revolutionary research strategies for e-business: A philosophy of science view in the age of the Internet. In Economics, Information Systems and Electronic Commerce: Empirical Advances, Kauffman RJ, Talion PP (eds). M.E. Sharpe: Armonk, NY.
35. Kennedy P. 1998. A Guide to Econometrics (4th edn). MIT Press: Cambridge, MA.
36. Lach S, Tsiddon D. 1996. Staggering and synchronization in price-setting: evidence from multiproduct firms. American Economic Review 86(5): 1175-1196.
37. Lal R, Sarvary M. Fall 1999. When and how is the Internet likely to decrease price competition. Marketing Science 18(4): 485-503.
38. Levy D, Bergen M, Dutta S, Venable R. 1997. The magnitude of menu costs: direct evidence from large U.S. supermarket chains. Quarterly Journal of Economics 112(3): 791-825.
39. Levy D, Dutta S, Bergen M. 2002. Heterogeneity in price rigidity: evidence from a case study using microlevel data. Journal of Money, Credit and Banking 34(1): 197-220.
40. Loy JP, Weiss C. 2002. Staggering and synchronisation of prices in a low-inflation environment: evidence from German food stores. Agribusiness 18(4): 437-457.
41. Lynch JG, Ariely D. Winter 2000. Wine online: search costs and competition on price, quality, and distribution. Marketing Science 19(1): 83-103.
42. Neter J, Kutner MH, Nachtsheim CJ, Wasserman W. 1996. Applied Linear Statistical Models (4th edn). Irwin Press: Chicago, IL.
43. Nijs VR, Dekimpe MG, Steenkamp JBEM, Hanssens DM. 2001. The category demand effects of price promotions. Marketing Science 20(1): 1-22.
44. Pan X, Ratchford BT, Shankar V. 2003. Can price dispersion in online markets be explained by differences in e-tailer service quality? Journal of the Academy of Marketing Science 30(4): 433-445.
45. Pauwels K, Hanssens DM, Siddarth S. 2002. The longterm effects of price promotions on category incidence, brand choice, and purchase quantity. Journal of Marketing Research 39(4): 421-439.
46. Pindyck RS, Rubinfeld DL. 1998. Econometric Models and Economic Forecasts (4th edn). Irwin McGrawHill: Boston, MA.
47. Ratchford BT, Srinivasan N. 1993. An empirical investigation of returns to search. Marketing Science 12(1): 73-87.
48. Rothschild M. 1974. Searching for the lowest price when the distribution of prices is unknown. Journal of Political Economy 82(4): 689-711.
49. Sager I, Green H. 1998. Cyberprices: so where are all the bargains? Lessons of a web shopping spree: the convenience is unbeatable. But the price most often is not. Business Week (Industrial/Technology Edition) 3583: 162.
50. Salop S, Stiglitz JE. 1982. The theory of sales: a simple model of equilibrium price dispersion withidentical agents. American Economic Review 72(5): 1121-1130.
51. Sims CA. 1980. Macroeconomics and reality. Econometrica 48(1): 1-48.
52. Slade ME. 1998. Optimal pricing with costly adjustment: evidence from retail grocery prices. Review of Economic Studies 65(1): 87-107.
53. Smith MD, Bailey J, Brynjolfsson E. 2000. Understanding digital markets: review and assessment. In Understanding the Digital Economy, Brynjolfsson E, Kahin B (eds). MIT Press: Cambridge, MA; 99-136.
54. Srinivasan S, Pauwels K, Hanssens DM, Dekimpe M. 2002. Who benefits from price promotions? Harvard Business Review 80(9): 22-23.
55. Stiglitz JE, Weiss A. 1981. Credit rationing in markets with imperfect information. American Economic Review 71(3): 393-410.
56. Tirole J. 1988. The Theory of Industrial Organization. MIT Press: Cambridge, MA.
57. Tommasi M. 1994. The consequences of price instability on search markets: toward understanding the effects of inflation. American Economic Review 84(5): 1385-1396.
58. Varian HR. 2000. Market structure in the network age. In Understanding the Digital Economy, Brynjolfsson E, Kahin B (eds). MIT Press: Cambridge, MA; 137-150.
59. Weiss A. 1980. Job queues and layoffs in labor markets with flexible wages. Journal of Political Economy 88(3): 526-538.
60. Zbaracki MJ, Ritson M, Levy D, Dutta S, Bergen M. 2004. Managerial and customer costs of price adjustment: direct evidence from industrial markets. Review of Economics and Statistics 86(2): 514-533.