Amazon has completely overhauled how retailers set their prices - here's how it'll affect everyone from shoppers to the Fed
- As Amazon has led the online retail revolution, the manner in which companies price their goods has been permanently changed.
- A new study from Harvard Business School assesses the impact of these changes on consumers, as well as the Federal Reserve, which watches prices closely when making monetary policy decisions.
Over time, it's become a widely accepted fact that Amazon has pushed retail prices lower.
The company's offerings are so diverse that they can afford to sell many products at razor-thin margins, then make up for it in other, less competitive areas.
In the process, Amazon forces other retailers to lower their prices, putting pressure on their bottom lines. And, in many cases, it's forced these competitors to permanently alter their pricing strategies.
But it doesn't end there. A new study from Harvard Business School argues that the so-called "Amazon effect" has increased both the frequency and magnitude of retail price fluctuations. ...
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