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The Electronic Law of One Price (eLOP)
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Author(s): Camillo Lento (Lakehead University, Canada), Alexander Serenko (Lakehead University, Canada), Nikola Gradojevic (Lakehead University, Canada), Lorne Booker (McMaster University, Canada)and Sert Yol (Kwantlen Polytechnic University, Canada)
Copyright: 2010
Pages: 10
Source title:
Encyclopedia of E-Business Development and Management in the Global Economy
Source Author(s)/Editor(s): In Lee (Western Illinois University, USA)
DOI: 10.4018/978-1-61520-611-7.ch006
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Abstract
The recent growth in the breadth of products sold in electronic commerce markets has created fertile grounds to investigate the Electronic Law of One Price (eLOP). Violations of this law are now more puzzling because many of the traditional frictions should no longer be relevant. This empirical study tests the eLOP by utilizing two datasets with online price data. Pairwise comparison tests reveal that the eLOP does not hold true for any of the product price categories tested.
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