The Empirical Study Of Price And Price Dispersion On E-Commerce Market

It is generally believed that e-commerce market can reduce searching cost effectively, increase information transmitting efficiency and transparency, consequently enhance market efficiency. Even more, some scholars put forward the theoretical hypothesis that e-commerce market will lead to friction-free commerce. According to this hypothesis, deduction that can be tested obtained from this hypothesis is that e-commerce will lead to lower market prices and the price dispersion between different vendors will disappear. Concentrated on Chinese developing e-commerce market on tourism booking, it will be a research issue worthy of being highly valued in theory and application to collect the market price data in order to execute an examination on the above deduction, and investigate whether this hypothesis suppose is tenable or not.Considered hotel booking online as an example, this paper collect two types of on-line price data (Panel data): one is from pure internet retailers (Dotcoms), the other is from multi-channel retailer (MCRs) that have on-line and traditional business. By using parameters and nonparametric statistical tests, econometric modelling analysis method, we conducted an empirical analysis that China's B2C e-commerce market efficiency about tourism booking has not increased. Details are showed as follows:1. Prices and the price dispersion level between Dotcoms and MCRs retailers have no significant difference.2. During the whole studying period, two kinds of retalers' price level and price dispersion have all the trend of tardo declining along with time. The price dispersion is widespread and continual existing.3. All the products have obviously "festival-effect". It shows that both price level and price dispersion on festival are lower than that on workday. However, there is no significantly different effect on two retailers.4. The internet retailers' own characteristics affect the pricing of products. Different retailers had different mean price. in the base of the Empirical Study's result that "non-fiction commerce" did not happened in internet, this paper study the demand of consumer from the purchasing behavior of the customer,and find that some non-price-facts will effect consumer's decision. So the company will change their price strategy to fit consumer's demand, that "non-fiction commerce" can not be happened.