Some empirical observations on price patterns in online stores

Abstract

This study aims, through a short experimentation, to empirically identify price patterns in popular products from large online retailers. A set of 35 products and prices were monitored for 15 days, three times per day. Three simple price patterns were identified, and four patterns involving two or more sellers were described. The simple price patterns were Temporary rises and fall of prices, Alternation between two prices, and Ladder steps of prices. Compound pattern prices were Price chasing, Price exchange, Mimic at a lower or similar minimum prices, and Conditioned appearance, most of them described in economic literature. This research does not discuss the use of algorithmic pricing when setting prices by online retailer but it could be involved. Next steps in this research consider to wider the number of analyzed products and to increase the frequency and time of their monitoring.