The study on the competitive dynamics of online and brick-and-mortar retail prices reveals a strong relationship between the two channels, with prices in one channel responding quickly to changes in the other. Online prices are generally more responsive to brick-and-mortar price shifts, adjusting more rapidly. The research shows that online and offline prices are frequently identical, with deviations being rare and short-lived. Overall, the analysis highlights intense competition across both retail channels, where regulation in one is likely to impact the other.

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