Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 17

You are the manager of Local Electronics Shop (LES), a small brick-and-mortar retail camera and electronics store. One of your employees proposed a new online strategy whereby LES lists its products at Pricesearch.com-a price comparison Web site that allows consumers to view the prices of dozens of retailers selling the same items. Would you expect this strategy to enable LES to achieve sustainable economic profits? Explain.