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  • Materi 4 Ekonomi Digital

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    This document discusses pricing behavior in e-markets. It notes that while prices for consumers are falling long-term, e-purchases should cost more than physical stores. The global openness of e-markets makes price discrimination more difficult. It describes different types of price discrimination and notes the e-markets give equal access to price information. Success depends on how the parties use the internet. Online auctions and customer-to-customer sites are common. E-markets now approximate stock markets with constantly adjusting prices using demand-based pricing models.

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    This document discusses pricing behavior in e-markets. It notes that while prices for consumers are falling long-term, e-purchases should cost more than physical stores. The global openness of e-markets makes price discrimination more difficult. It describes different types of price discrimination and notes the e-markets give equal access to price information. Success depends on how the parties use the internet. Online auctions and customer-to-customer sites are common. E-markets now approximate stock markets with constantly adjusting prices using demand-based pricing models.

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    13 views5 pages

    Materi 4 Ekonomi Digital

    Uploaded by

    monika
    This document discusses pricing behavior in e-markets. It notes that while prices for consumers are falling long-term, e-purchases should cost more than physical stores. The global openness of e-markets makes price discrimination more difficult. It describes different types of price discrimination and notes the e-markets give equal access to price information. Success depends on how the parties use the internet. Online auctions and customer-to-customer sites are common. E-markets now approximate stock markets with constantly adjusting prices using demand-based pricing models.

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    of 5

    PRICING

    BEHAVIOUR
    SESSION 3: PRICING BEHAVIOR

     Prices in the e-markets are falling in the long run for the average consumer.
     But the cost of e-purchase should be higher that at a physical ‘take-away’ store.
     Global openness and transparence of e-markets is making it more difficult to discriminate in prices.
     The different types of discrimination are as follows:

     First-degree price discrimination: also known as perfect


    price discrimination. The seller charges a different price for
    each unit of the good based on the costumer’s maximum
    willingness-to-pay for that unit.
    SESSION 3: PRICING BEHAVIOR …1

     Second-degree price discrimination: also known as nonlinear pricing. Price differ depending on the number
    of units of the good bought, and not across costumers.
     Third-degree price discrimination: different purchases are charged different prices. But each purchaser
    pays a constant amount for each unit of the good bought.
     The e-markets give buyers and sellers equal access to retailer information about prices.
     Success depends on how well either party is using the full potential of the Internet for his best
    benefit.
     Online auctions is common and Customer-to-Customer (C2C) sites have increased.
    SESSION 3: PRICING BEHAVIOR ..2

     The sites act like an intermediary, facilitating deals between parties.


     Many e-markets now approximate the stock market, with prices adjusting constantly.
     A dominant dynamic pricing model is known as ‘demand-based pricing’.
     This is based on the concept of volume discounts in the beginning.
     Shopping sites allow users to commit to buy a product if the price drops at least to a
    specified level within a time period, usually a few days.
     In what ways is the internet making price discrimination difficult.
     Do you agree that the internet has made many services and commodity markets to
    approximate the stock market with constan
    REVIEW QUESTIONS

    1. In what ways is the internet making price discrimination difficult.


    2. Do you agree that the internet has made many services and commodity markets
    to approximate the stock market with constan

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