TY - JOUR
T1 - Competition Between Online and Physical Stores
T2 - The Implications of Providing Product Information by Pure-Play E-tailer
AU - Tojo, Ryohei
AU - Matsubayashi, Nobuo
PY - 2011/7
Y1 - 2011/7
N2 - This paper studies the competition between a single pure-play e-tailer and a bricks-and-mortar retailer, which are originally spatially differentiated. By utilizing information and communication technology, a pure-play e-tailer can strategically control consumers' disutility for online purchase. However, such an action may also raise consumers' motivation to visit the physical store, which causes free-riding by the bricks-and-mortar retailer. We show that in the presence of a high free-riding effect, the e-tailer should be willing to provide information only about 'niche' products, which also results in improving the welfare of all members in the market.
AB - This paper studies the competition between a single pure-play e-tailer and a bricks-and-mortar retailer, which are originally spatially differentiated. By utilizing information and communication technology, a pure-play e-tailer can strategically control consumers' disutility for online purchase. However, such an action may also raise consumers' motivation to visit the physical store, which causes free-riding by the bricks-and-mortar retailer. We show that in the presence of a high free-riding effect, the e-tailer should be willing to provide information only about 'niche' products, which also results in improving the welfare of all members in the market.
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U2 - 10.1002/mde.1534
DO - 10.1002/mde.1534
M3 - Article
AN - SCOPUS:79960558424
VL - 32
SP - 281
EP - 292
JO - Managerial and Decision Economics
JF - Managerial and Decision Economics
SN - 0143-6570
IS - 5
ER -