The optimal pricing decisions for e-tailers with different payment schemes

Along with the quick development of e-commerce, different payment schemes are provided to online consumers to improve their shopping experience. Currently, the payment schemes can be divided into two categories, one is pay-to-order, and the other is pay-on-delivery. Payment scheme directly affects consumers’ behavior and e-tailer’s pricing decision in e-commerce. In this paper, we characterize the consumers’ purchase and returns behavior with...