Essays on the economics of electronic markets: Pricing, retention and competition

This dissertation aims to address three research questions relevant for the study of the economics of electronic markets in three essays. The first essay analyzes the role of switching cost in electronic markets and discusses how we can measure the magnitude of switching cost. The second essay empirically estimates the level of switching cost using data on the online brokerage industry and examines the drivers of customer switching and attrition. The third essay characterizes the structure of price dispersion in electronic markets based on limited awareness and brand sensitivity. By studying these important issues, we can better understand the nature of competition in electronic markets and help guide firms\u27 investment decisions in electronic markets