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The equity implications of e‐commerce: A note
Author(s) -
Eleftheriou Konstantinos,
Polemis Michael L.
Publication year - 2019
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3020
Subject(s) - equity (law) , inequality , matching (statistics) , e commerce , microeconomics , economics , simple (philosophy) , business , computer science , mathematics , mathematical analysis , philosophy , statistics , epistemology , world wide web , political science , law
We develop a simple model with heterogeneous agents and search frictions to study how increases in matching intensity between buyers and retailers as a result of e‐commerce determine the level of income inequality among retailers. Our findings indicate that a reduction in search frictions leads to higher inequality and induces buyers to purchase goods and services only from specialized retailers.