Electronic market characteristics29 نوفمبر 2021 2021-11-25 23:02
Electronic market characteristics
Is the electronic marketplace controlled by full competition or price discrimination?
The e-marketplace is truly under the perfect competition control since a few clicks can shift the consumer from one producer to another however some sort of price discrimination can take place. For instance, the first degree price discrimination thats applied by the monopolistic telecommunications companies by offering their services for the maximum price the consumer willing to pay. Also, the second degree which involved discounts by buying in bulks like Ali baba company.
electronic marketplace is an open nature which any one can determine his price but ,who offer the product with lower price will make losses in others markets, which makes e-commerce market so competitive market with discrimination in prices ,But with telecom services for example there is no competition in this field. so they do some monopolistic activities
Perfect competition is always mentioned but when we look at it’s implementation we can see that it is near to theoretical more than being a real thing until e markets begun to work at this point real perfect competition appeared as people have wide varieties at their hands anyhere and can compare all products and services worldwide not only regional which allows more competition and at the end of the day the most utility achieved by consumers so we can say that it is controlled by full competition and also as well price discrimination in some cases
The web pages may enable the sellers to make price discrimination
The e market place is close to perfect market competiton
Perfect Competition in Ecommerce Markets. Perfect Competition is a theoretical market scenario where no sellers achieve profit above break-even and every seller is a ‘price taker’. Some e-commerce markets are so competitive that their sellers are almost in Perfect Competition