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Author: | Bhargava, H. K. Choudhary, V. Krishnan, R. |
Title: | Pricing and product design: intermediary strategies in an electronic market |
Journal: | International Journal of Electronic Commerce
2000 : FALL, VOL. 5:1, p. 37-56 |
Index terms: | Product design Pricing Strategy Electronic commerce Markets |
Freeterms: | e-commerce |
Language: | eng |
Abstract: | Electronic intermediaries play an important role in many Web-based electronic markets, adding value for participants by offering such services as matchmaking and trust. This paper presents an economic model of intermediation where the intermediary offers services to two types of actors: consumers and providers. When consumers are heterogeneous, differentiated by their willingness to pay for intermediation, the intermediary can potentially offer two or more levels of service quality to target different consumer segments. The analysis in this paper highlights the aggregation benefit that consumers derive from having access to multiple providers through the intermediary. |
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