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Information And Price Dispersion On Net

Civan, Abdülkadir
Oktay, Murat
Tunc, Cengiz
Internet firms charge a wide range of prices for nearly homogeneous products and price dispersion vary significantly across markets. This study is an attempt to explain different levels of price dispersion across online product markets. We found price dispersion vary systematically with the number of firms offering the product and the markets at which consumers are more informed have smaller price dispersion. Moreover prices charged by individual retailers decline as the number of retailers selling the same product rise.