ajaz_eco_204_2012_2013_chapter_16_Market_Power

A product in the buy box or the default box that adds

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Unformatted text preview: tain the lowest price —even if only by a penny—so that their products will show up at the top of the search results by shoppers doing price comparisons. One crucial difference with the travel industry is that Internet retailers are usually competing against a lot of different competitors with identical products. By contrast, airlines and hotels have a fixed number of competitors, and certain players dominate certain markets. Mercent Corp., the company that provides the software used by Cookie's, says it changes the price of two million products an hour. Mercent says it makes price decision based on a variety of factors such as competitors' prices, competitors' shipping prices, manufacturer price restrictions and seasonal sales. Retailers pick their settings to determine how frequently prices are adjusted, which products are tracked and which competing websites are ignored. The most frequent changes are for consumer electronics, clothing, shoes, jewelry and household staples like deterg...
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This document was uploaded on 01/19/2014.

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