An Experimental Pricing Framework for E-Commerce

Journal of Theoretical and Applied Electronic Commerce Research

Puneet Vatsa¹  Wanglin Ma¹  Xiaoshi Zhou² 

[1] Department of Global Value Chains and Trade, Faculty of Agribusiness and Commerce, Lincoln University, Christchurch 85084, New Zealand;National School of Development, Peking University, Beijing 100871, China;

关键词: pricing strategy;    profit maximization;    digital products;    experimental analysis;   

DOI  :  10.3390/jtaer16070141

来源: DOAJ

【 摘 要 】

Characterizing the demand curve of products is important for pricing them optimally. However, in deriving empirical demand curves, econometricians have to contend with identification issues. Furthermore, theoretical demand curves derived using standard economic theory are divorced from empirical realities: firms rarely have information on customers’ budget constraints; theoretical utility functions are seldom derived empirically. Recognizing these issues, we propose an experimental approach for determining a product’s demand curve and, in turn, its profit-maximizing price in online environments. The proposed approach yields precise estimates and is quick and inexpensive to implement.

【 授权许可】

Unknown