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

IMPROVING THE PROVISION OF HOUSING CONSTRUCTION IN UKRAINE

The current state of the housing construction market in Ukraine has been studied. Factors that contribute to its development and operation have been identified. Weaknesses and problems of the housing sector have been ide...

ІНВЕСТИЦІЇ: СУЧАСНЕ РОЗУМІННЯ ТА КЛАСИФІКАЦІЯ

Уточнено визначення поняття "інвестиції" та їх класифікацію з урахуванням сучасних особливостей розвитку економіки. Досліджено сучасні визначення поняття "інвестиції", розглянуто його відмінності, чинники впливу. Виявлен...

ЗАХИСТ ЕКОНОМІЧНИХ ІНТЕРЕСІВ ДЕРЖАВИ ТА ФІЗИЧНИХ ОСІБ МІЖНАРОДНИМ CУДОМ

Cтаття присвячена дослідженню проблеми захисту економічних інтересів держави та фізичних осіб у Міжнародному суді. Встановлено, що добросовісне виконання державами міжнародних договорів з економічних питань безпосередньо...

СПІЛЬНІ РИСИ Й НАЦІОНАЛЬНІ ОСОБЛИВОСТІ ЕКОНОМІКИ КРАЇН ЦЕНТРАЛЬНОЇ ТА СХІДНОЇ ЄВРОПИ

Виявлено загальні риси та національні особливості економіки країн Центральної та Східної Європи (ЦСЄ), які можна розглядати як сукупність чинників формування регіональної ідентичності країн ЦСЄ. У результаті аналізу вел...

THE INTERACTION OF STATE AND MARKET COORDINATION

The nature of interaction of state and market coordination of economic activities is studied. Attention is focused on the necessity of retreat from the neoclassical view on the state role as a market failures compensator...

Download PDF file
  • EP ID EP128541
  • DOI -
  • Views 82
  • 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