We consider the spatial competition between two traditional physical (or offline) retailers and an Internet (or online) retailer where the efficiency of the latter differs from that of the former. We assume that consumers are heterogeneous across two dimensions: (1) the costs of traveling to either of the offline retailers; and (2) the costs of purchasing from the online retailer. Both dimensions depend on the spatial location of consumers and are independent of each other. We show that the online retailer maximizes its profit at an intermediate level of the consumer disutility of online purchase when its efficiency is low.

Colombo, S., Matsushima, N., Competition Between Offline and Online Retailers with Heterogeneous Customers, <<REVIEW OF INDUSTRIAL ORGANIZATION>>, 2020; 57 (3): 647-664. [doi:10.1007/s11151-019-09734-1] [http://hdl.handle.net/10807/163995]

Competition Between Offline and Online Retailers with Heterogeneous Customers

Colombo, S.;
2020

Abstract

We consider the spatial competition between two traditional physical (or offline) retailers and an Internet (or online) retailer where the efficiency of the latter differs from that of the former. We assume that consumers are heterogeneous across two dimensions: (1) the costs of traveling to either of the offline retailers; and (2) the costs of purchasing from the online retailer. Both dimensions depend on the spatial location of consumers and are independent of each other. We show that the online retailer maximizes its profit at an intermediate level of the consumer disutility of online purchase when its efficiency is low.
Inglese
Colombo, S., Matsushima, N., Competition Between Offline and Online Retailers with Heterogeneous Customers, <<REVIEW OF INDUSTRIAL ORGANIZATION>>, 2020; 57 (3): 647-664. [doi:10.1007/s11151-019-09734-1] [http://hdl.handle.net/10807/163995]
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/163995
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 5
  • ???jsp.display-item.citation.isi??? 4
social impact