The impact of e-commerce and its implications in the automobile industry: a social welfare approach

Publication Type:

Journal Article


Nakayama, Y.


International Journal of Automotive Technology and Management, Volume 2, Number 2, p.159-176 (2002)



In this paper, I examine the effect of e-commerce on our economy. After reviewing some empirical evidence about e-commerce in various fields including the automobile industry, I numerically assess the impact of e-commerce by using Nakayama and Nishimura model [1] where conventional and electronic retailers compete in a retail market. Then, I point out that whilst e-commerce greatly benefits consumers it probably damages business and possibly our economy. However, I also point out that these results depend crucially on the following two assumptions: e-commerce does not increase market demand no price and product differentiation prevails. Finally, I propose a measure for e-commerce to become a promising business model for the auto industry, creating a situation where the two assumptions do not hold. © 2002 Inderscience Enterprises Ltd.

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