Management Papers
Document Type
Journal Article
Date of this Version
8-2002
Publication Source
Journal of Financial Services Research
Volume
22
Issue
1
Start Page
73
Last Page
90
DOI
10.1023/A:1016087915007
Abstract
Some implications of e-Commerce financial services firms are becoming clear. The web drives transparency, and increases the information endowment of all market participants. It is harder to manipulate customers' behavior, or to overcharge them. Transparency drives differential pricing. Not all customers can or should be charged the same prices. Transparency reduces the viability of cross-subsidies between customers can or between products. The differential pricing enabled by the web transforms distribution channels, and enables direct distribution and alternative forms of distribution. Some intermediateraries may be bypassed altogether, while others may rapidly lose their best, most profitable, and previously most loyal customers.
Copyright/Permission Statement
The final publication is available at Springer via http://dx.doi.org/10.1023/A:1016087915007
Keywords
Net-based financial services, transparency, pricing, bypass and disintermediation
Recommended Citation
Clemons, E. K., Hitt, L. M., Gu, B., Thatcher, M. E., & Weber, B. W. (2002). Impacts of e-Commerce and Enhanced Information Endowments on Financial Services: A Quantitative Analysis of Transparency, Differential Pricing, and Disintermediation. Journal of Financial Services Research, 22 (1), 73-90. http://dx.doi.org/10.1023/A:1016087915007
Date Posted: 19 February 2018
This document has been peer reviewed.