The pricing strategies of online grocery retailers

This paper documents the differences in pricing strategies between online and offline (brick-and-mortar) channels. We collect price data for identical products from leading online grocery retailers in the United States and complement it with offline data for the same products from scanner data. Our...

Descripción completa

Detalles Bibliográficos
Autores: Aparicio, D. (Diego)|||/items/a9535ca4-5f89-4b78-b0b5-579175be857b, Metzman, Z. (Zachary)|||/items/2dd69840-446a-4a3b-ae56-d161ca8ebc86, Rigobon, R. (Roberto)|||/items/1f34fa79-0c75-45da-9a11-31940a9d9b1b
Tipo de recurso: artículo
Fecha de publicación:2023
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:español
OAI Identifier:oai:dadun.unav.edu:10171/68156
Acceso en línea:https://hdl.handle.net/10171/68156
Access Level:acceso abierto
Palabra clave:Algorithmic pricing
Price dispersion
Price discrimination
Online groceries
Scanner data
Amazon
Walmart
Descripción
Sumario:This paper documents the differences in pricing strategies between online and offline (brick-and-mortar) channels. We collect price data for identical products from leading online grocery retailers in the United States and complement it with offline data for the same products from scanner data. Our findings reveal a consistent pattern: online retailers exhibit higher price dispersion than their offline counterparts. More specifically, online grocers employ price algorithms that amplify price discrimination in three key dimensions: (1) over time (through frequent price changes), (2) across locations (by charging varying prices based on delivery zipcodes), and (3) across sellers (by setting dispersed prices for identical products across rival retailers).