Impacts of e-Commerce and enhanced information endowments on financial services: A quantitative analysis of transparency, differential pricing, and disintermediation

Eric K. Clemons, Lorin M. Hitt, Bin Gu, Matt E. Thatcher, Bruce W. Weber

Research output: Contribution to journalArticle

13 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)73-90
Number of pages18
JournalJournal of Financial Services Research
Volume22
Issue number1-2
DOIs
StatePublished - 2002
Externally publishedYes

Fingerprint

Quantitative analysis
Transparency
Disintermediation
Electronic commerce
Endowments
Pricing
Financial services
World Wide Web
Viability
Distribution channels
Service firms
Customer behavior
Cross-subsidies

Keywords

  • Bypass and disintermediation
  • Net-based financial services
  • Pricing
  • Transparency

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

Impacts of e-Commerce and enhanced information endowments on financial services : A quantitative analysis of transparency, differential pricing, and disintermediation. / Clemons, Eric K.; Hitt, Lorin M.; Gu, Bin; Thatcher, Matt E.; Weber, Bruce W.

In: Journal of Financial Services Research, Vol. 22, No. 1-2, 2002, p. 73-90.

Research output: Contribution to journalArticle

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