Amazon, Inc. (NASDAQ:AMZN) and other retailers are selling goods with more uniform prices, according to a major study.
Utilizing data from a broad range of retailers, Harvard Business School professor Alberto Cavallo found that online retail has influenced pricing behavior among competitors. Across different zip codes, companies are becoming more likely to have similarly priced goods, nullifying the benefits of “bargain shopping.”
Market Watch provides details:
As for cases where prices aren’t changing quickly or becoming more uniform, Cavallo argued that concerns about fairness might be at play. “What people consider to be ‘fair’ in terms of pricing can change across countries, sectors, and time periods,” Cavallo wrote. “More work connecting pricing technologies, web transparency, and fairness will be needed to understand how pricing behaviors and inflation dynamics are likely to evolve in the future.”
The food and beverages category displayed more variation than other sectors, according to the study. Goods at Walmart stores were more likely to be similarly priced across locations if they could be purchased on Amazon.
Amazon,Inc. shares were trading at $1,696.26 per share on Thursday afternoon, down $58.99 (-3.36%). Year-to-date, Amazon.com, Inc. (AMZN - Get Rating) has gained 45.05%, versus a 3.48% rise in the benchmark S&P 500 index during the same period.