An Experimental Pricing Framework for E-Commerce

Puneet Vatsa; Wanglin Ma; Xiaoshi Zhou

doi:10.3390/jtaer16070141

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An Experimental Pricing Framework for E-Commerce

Journal article

Open access

Peer reviewed

An Experimental Pricing Framework for E-Commerce

Puneet Vatsa, Wanglin Ma and Xiaoshi Zhou

Journal of Theoretical and Applied Electronic Commerce Research, Vol.16(7), pp.2573-2578

2021

DOI: https://doi.org/10.3390/jtaer16070141

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Abstract

Pricing strategy

Profit maximization

Digital products

Experimental analysis

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.

Details

Title: An Experimental Pricing Framework for E-Commerce
Authors: Puneet Vatsa (Author) - Lincoln University
Wanglin Ma - Lincoln University
Xiaoshi Zhou (Corresponding Author) - Peking University
Publication details: Journal of Theoretical and Applied Electronic Commerce Research, Vol.16(7), pp.2573-2578
Publisher: MDPI AG
Date published: 2021
DOI: 10.3390/jtaer16070141
ISSN: 0718-1876
Copyright note: Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/)
Grant note: This research was funded by the National Natural Science Foundation of China, grant number 72003089.
Organisation Unit: School of Business and Creative Industries
Language: English
Record Identifier: 991148839402621
Output Type: Journal article

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Collaboration types: Domestic collaboration; International collaboration
Web Of Science research areas: Business

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