Pricing online: The case of consumer

In this study, we compare the pricing behavior between online branches of traditional retailers (OBTRs) and online‐only retailers (ORs). Focusing on branded electronics sold online, we find that no significant pricing differences between ORs and OBTRs, but ORs seem to price slightly higher than OBTRs both in terms of posted‐ and full‐prices online. This result seems unique in online retail markets, contrary to the observations in the online markets of books, CDs and DVDs. The evidence also shows that both types of online retailers do not change their prices frequently,but adjustment magnitudes are large.