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The equity implications of e‐commerce: A note

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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… Click to show full abstract

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.

Keywords: implications commerce; commerce note; equity implications

Journal Title: Managerial and Decision Economics
Year Published: 2019

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