MODELLING THE TRADE MARKET FUNCTIONING WITH AVAILABLE ELECTRONIC AND TRADITIONAL TRADE MECHANISMS

Journal Title: Економіка розвитку - Year 2016, Vol 77, Issue 1

Abstract

The functioning of a trade market has been studied based on modelling competitive interaction between e-shopping and traditional shopping. A linear city Salop classical model with symmetric differentiation of goods and free entry into the electronic trading market has been used. In the current study, the factor of the seller and buyer location in e-trading is determined by the cost of delivery. A mathematical model of competitive interaction between an online store and a conventional store which takes into account the shop location in the space of the trade market has been developed. It has been shown that depending on the store location on the trade market, the maximum price for consumers will be different, with the point of maximum price equilibrium values shifting as well. Customer transaction expenses in electronic trade essentially depend on the distance of delivery which is determined by the online store location on the trade market and depends on the category of territorial urbanization of the buyer and seller location. The obtained simulation results suggest a possibility of practical application of the developed model to predicting maximum prices of different goods in electronic trade markets. The effect of transition of a traditional shop to the mechanisms of electronic trade when a conventional shop creates an online showcase has been investigated. The investigation results of the effect of transition to the mechanisms of electronic trade have shown, that competition in electronic trade increases essentially if the online store and the online showcase of a conventional store are situated in one territorial urbanization category. As a consequence, this leads to lower prices and reduced profit in a regular store, as compared to the case of not opening an online showcase.

Authors and Affiliations

O. Pursky , B. Grinyuk , I. Moroz

Keywords

Related Articles

SYSTEM APPROACH TO DETERMINING THE RELATIONSHIP OF MONETISATION, CAPITALISATION AND SOCIALISATION OF THE NATIONAL ECONOMY

The article deals with the logic of socioeconomic development within the framework of the determination of extended and restricted reproduction of the processes of monetisation, capitalisation and socialisation. A system...

IMPROVEMENT OF TECHNOLOGY TRANSFER IN HIGHER EDUCATIONAL ESTABLISHMENTS

Questions of organizing scientific and research activities in higher educational establishments have been considered. Attention has been focused on the necessity of increasing the initiative of universities as the main p...

 A SYSTEMIC AND STRUCTURAL APPROACH TO THE LEADERSHIP OF INDUSTRIAL ENTERPRISES

The author's vision of the problem of formation of the leadership of industrial enterprises in the market is provided on the basis of the structural approach. An enterprise is offered to be considered as a system consist...

ТРАНСФОРМАЦІЯ ПІДХОДУ ДО МОТИВАЦІЇ ПРАЦІ ПЕРСОНАЛУ В УМОВАХ ІНФОРМАЦІЙНОЇ ЕКОНОМІКИ 

Розглянуто основні проблеми, пов'язані із формуванням інформаційної економіки в Україні, що змінює вимоги до працівників, ставлення до бізнесу, систему управління підприємствами, мотиви та методи прийняття рішень. Дослід...

DIFFERENTIATION BETWEEN THE NBU REGULATIONS AS TO PROVISIONING FOR ACTIVE BANK TRANSACTIONS

Theoretical principles and practical advice on the formation of reserves on active operations of banks were considered. The main differences were identified between Regulation No. 23 "About the formation and use of Ukrai...

Download PDF file
  • EP ID EP128541
  • DOI -
  • Views 125
  • Downloads 0

How To Cite

O. Pursky, B. Grinyuk, I. Moroz (2016). MODELLING THE TRADE MARKET FUNCTIONING WITH AVAILABLE ELECTRONIC AND TRADITIONAL TRADE MECHANISMS. Економіка розвитку, 77(1), 83-91. https://europub.co.uk/articles/-A-128541