Finance
Amazon effect study: Cavallo explains how retail pricing has changed
Ted S. Warren/AP Images
-
As Amazon has led the online retail revolution, the
manner in which companies price their goods has been
permanently changed. -
A new study from Harvard Business School assesses the
impact of these changes on consumers, as well as the Federal
Reserve, which watches prices closely when making monetary
policy decisions.
Over time, it’s become a widely accepted fact that Amazon has pushed retail prices
lower.
The company’s offerings are so diverse that they can afford to
sell many products at razor-thin margins, then make up for it in
other, less competitive areas.
In the process, Amazon forces other retailers to
lower their prices, putting pressure on
their bottom lines. And, in many cases, it’s forced these
competitors to permanently alter their pricing strategies.
But it doesn’t end there. A new study from Harvard Business
School argues that the so-called “Amazon effect” has
increased both the frequency and
magnitude of retail price fluctuations. …
Sponsored:
If you enjoyed reading this story so
far, why don’t you join Business Insider
PRIME? Business Insider provides visitors from MSN with a
special offer.
Simply
click here to claim your deal and get access to all exclusive
Business Insider PRIME benefits.
-
Entertainment7 days ago
What’s on the far side of the moon? Not darkness.
-
Business6 days ago
TikTok faces a ban in the US, Tesla profits drop and healthcare data leaks
-
Business6 days ago
London’s first defense tech hackathon brings Ukraine war closer to the city’s startups
-
Entertainment7 days ago
How to watch ‘The Idea of You’: Release date, streaming deals
-
Entertainment6 days ago
Mark Zuckerberg has found a new sense of style. Why?
-
Business5 days ago
Humanoid robots are learning to fall well
-
Entertainment5 days ago
2024 summer TV preview: 33 TV shows to watch this summer
-
Business4 days ago
Google Gemini: Everything you need to know about the new generative AI platform