Competitive Dynamics of Online and Brick-and-Mortar Retail Prices

Prices charged by brick-and-mortar retail channels tend to correspond closely to those charged online – good news for consumers, who benefit from a competitive retail landscape through lower prices and diverse venue options. This is a key finding in an economic study by the Brattle Group analyzing nationwide price and volume aggregates alongside hand-collected price observations from individual retail locations. The study found that both channels fiercely compete on price.