Purchase Solution

Using Internet Retailing for Economic Analysis

Not what you're looking for?

Ask Custom Question

If you had access to the proprietary data of paypal.com, what additional economic questions might you be able to study that you wouldn't with a traditional brick and mortar retailer?

Purchase this Solution
Solution Summary

How one might use data from Paypal to answer economic problems is determined. The additional economic questions which might be able to study that you wouldn;t with a traditional brick and mortar retailer is determined.

Solution Preview

Paypal.com has quickly come to dominate the online payment industry. With only an email address and a password required to send money, Paypal.com is an increasingly popular way to conduct monetary transactions.

Because the Internet works in a fundamentally different way, it permits us to perform research on questions which we could previously only speculate upon. These include the importance of search costs and taxation.

Economists have long known that markets are affected by consumer search costs. The Internet's primary advantage is convenience. For consumer, it offers product descriptions, price comparisons with the click of a mouse, thus increasing market transparency. This dramatically lowers search costs. These are costs incurred by the buyer as he attempts to find the best value. For example, you may want to visit a few stores before you choose the best deal for a particular item. But you probably wouldn't want to visit hundreds. There comes a point where the cost of the search becomes more than the savings you can gain from searching. Economists gain insight into this aspect of shopping by comparing markets with higher and lower search costs. It was difficult, however, to find ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • The evolution and market growth of a medical center using the wheel of retailing concept

    If they cannot care for a person, they will transport them to the nearest local Emergency facility. Using the wheel of retailing concept, it is important to generate concepts such as new services.

  • Wal Mart - advantage of opportunities in the environment

    This analysis will help in determining the opportunities & threats for Wal-Mart: External Factor OPPORTUNITIES Economic development of Asia and other developing countries Trend of Super stores increasing Demographics favoring retailing and consumerism

  • Retailing changes

    1) Advent of internet/ecommerce: The most important prominent change observed in retailing in all sectors and goods and expected to continue and grow in the future is the increasing use of online shopping portals by consumers to purchase goods and

  • Growth of B2C e-commerce in next few years: Good or not so good for consumers?

    The solution reports the advantages and some disadvantages for both the buyer and the sellers in the internet environment.

  • Trends in Non-Store Retailing

    This is applicable to selling other items throughout the Internet and through non-store retailing.

  • Ebay as a business

    For instance, amazon.com is very well entrenched in online retailing and eBay will not be able to surpass it easily.

  • Retailing Location analysis and market selection

    175557 Retailing Location Analysis and Market Selection A on-line retail expert once said "the number one issue for website success is getting traffic to the site.

  • Trends for Target

    As the consumers shy away from using credit and loans to make purchases, the sales levels will remain low. There is however a strong possibility that new retailers that are focused on low prices and wide selection may enter the retailing market.

  • Wal-Mart Store Strategic Audit Year 2005

    • Technological changes and emergence of virtual stores like amazon.com: Impact of Internet, virtual online stores, using Internet effectively to increase the reach and to reduce the cost.

View More Related Solutions