Analysis of Price Competition between Offline and Online Retailers in Electronic Commerce

전자상거래에서의 오프라인과 온라인 소매기업의 가격 경쟁 모델에 관한 분석

This paper examines strategic competition model between offline and online retailers and draws strategic implications. Research on the price competition between conventional offline retailers and online retailers has been done through empirical approaches, however, the results are conflicting. This paper reconciles the existing conflicting empirical findings on price levels between offline and online retailers through theoretical approach. This paper analyzes how the internet market has effect on equilibrium prices of both offline and online retailers and discusses the possible reasons why there exist price differences between offline and online retailers in business to consumer electronic commerce.