Investing in credibility: how e-tailers could proceed?

TL;DRAbstract

Empirical and analytical studies suggest that, if some information costs are actually reduced, in contrast other costs rise with the growth of information highways. Because e-tailers have to be credible to carry out transactions, they must pay for these features. From a review of the literature on e-commerce including theoritical analysis and empirical data, we are suggesting that information highways generate new kinds of information costs, namely the costs of credibility.

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