{"title":"E-retailers'quality-based price discrimination strategies under multiple shipping options","authors":"Pan Jing, W. Peng","doi":"10.1109/ICNDS.2010.5479598","DOIUrl":null,"url":null,"abstract":"In e-commerce, shipping is bundled with the purchase of product, which allows e-retailers to create vertical quality differentiation by offering multiple shipping options with some amount of market power, so it is possible for online sellers to use quality-variant of the same basic product to segment the market of heterogeneous consumers. This paper tests quality-based price discrimination model using data on shipping schedules offered by e-retailers. The results indicate that the quality of a slow shipping option is significantly associated with prices of faster shipping options in consistent with prediction of the price discrimination model.","PeriodicalId":403283,"journal":{"name":"2010 International Conference on Networking and Digital Society","volume":"17 4","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2010-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"2010 International Conference on Networking and Digital Society","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1109/ICNDS.2010.5479598","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
In e-commerce, shipping is bundled with the purchase of product, which allows e-retailers to create vertical quality differentiation by offering multiple shipping options with some amount of market power, so it is possible for online sellers to use quality-variant of the same basic product to segment the market of heterogeneous consumers. This paper tests quality-based price discrimination model using data on shipping schedules offered by e-retailers. The results indicate that the quality of a slow shipping option is significantly associated with prices of faster shipping options in consistent with prediction of the price discrimination model.
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