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

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Date Posted: 19 February 2018

This document has been peer reviewed.