Implications of Real-time Competition in Online Markets

Investigator: Chen Nan.

In the age of market digitalization, competition becomes increasingly dynamic. Airlines adopt sophisticated revenue management systems that enable real-time price adjustments. Small online sellers have access to automatic pricing tools that enable constant monitoring and repricing at minimal cost.
Would these new technologies influence the way firms compete? If so, would consumers benefit or not?
To answer these questions, we collect a large high-frequency data set from the internet. Using econometrics and machine learning methods, we examine how online sellers compete dynamically and how real-time competition affects market equilibrium. We highlight the implications of information technology in competitive markets. These insights will be valuable to consumers, online sellers as well as policy makers.

Reference:
“Perishable Good Dynamic Pricing under Competition: An Empirical Study in the Airline Markets”. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3228392

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google