Search costs in electronic markets: market equilibrium and corporation strategy
by Jian Chen, Yingxia Lin
International Journal of Electronic Business (IJEB), Vol. 1, No. 1, 2003

Abstract: In this paper, a model is built to analyse the influences of search costs on market equilibrium. According to the results of a simulation, we conclude that the equilibrium prices of e-markets are not always lower than those of conventional markets, especially under certain combinations of return costs and search costs. In addition, some managerial insights are derived from the simulation results, e.g. that information technology doesn't always create intensive price competition. Companies can soften competition in many ways in the e-market, such as differentiating themselves on the basis of search costs.

Online publication date: Mon, 21-Jul-2003

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Electronic Business (IJEB):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com