Journal of the Association for Information Systems 
Volume 11, Issue 6, June 2010, pp. 303-338, 

  

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Robert J. Kauffman 
W.P. Carey School of Business, Arizona State University, rkauffman@asu.edu 
Dongwon Lee 
Korea University Business School, Korea University, mislee@korea.ac.kr 
http://search.proquest.com/docview/609961370?pq-origsite=gscholar 



Abstract 

Price rigidity involves prices that do not change with the regularity predicted by standard economic theory, and is of long-standing interest to firms and industries, and the understanding of the economy as a whole. The previous IS literature has failed to identify the central role of IT and Internet retailing-related technologies to explain the rigidity of prices on the Internet. Thus, the issue of price rigidity and price adjustment in Internet retailing should be given more scrutiny than the literature has provided to date. The authors evaluate to what extent this knowledge is applicable to explain price-setting and price adjustment on the Internet. This study provides a foundation for the development of new theoretical perspectives at the crossroads of the academic disciplines of marketing, economics and IS. It encourages research that is able to probe for a deeper understanding of new economic phenomena associated with the digital economy's growth. 

Keywords

Economic analysis, 
information systems, 
information technology, 
interfirm competition, 
Internet retailing, 
multi-level theory, 
price rigidity, 
pricing strategy, 
variance theory.