CIRJE-F-144 | "Does e-Commerce Always Increase Social Welfare in the Long Run?" |
Author Name | Nakayama Yuji and Kiyohiko G. Nishimura |
Date | January 2002 |
Full Paper | PDF file@ |
Remarks | @ |
Abstract |
We examine the effect of electronic commerce ("e-commerce") on social welfare, in the framework of conventional spatial competition models. We consider the case where both conventional and electronic retailers coexist in equilibrium. We show that e-commerce does not necessarily increase social welfare in the long run. In particular, when electronic retailers have clear cost advantage over conventional retailers, then the advent of e-commerce is shown to reduce social welfare.
|