Price dispersion, information value and market efficiency in electronic markets: A comprehensive analytical framework

In this paper, we incorporate the proxies about price dispersion, information value and market efficiency in electronic markets into the same analytical framework for research, examine the explaining strength of existing literature on electronic markets form different perspectives. Based on that, we point out that price dispersion phenomena in electronic markets result from comprehensive effects of many factors. In the final, we outline the future directions for research, that is, in order to probe into the theories about price dispersion, measure of information and market efficiency in electronic markets, an comprehensive theory analytical framework that integrates those aspects influencing the price should be suggest through the introduction of price-comparison shopping diffusion model.