As to online shopping comparison engines — or comparison entities offline — no doubt they are removing many of the pricing disparities that previously existed between different sources of the same product, but the information alone doesn’t necessarily provide a “frictionless” transactional environment from an economists perspective (having studied that field).

It is a move in that direction, but ultimately leads us to a vendor where there may well be “limitations” / “restraints” on how products may be purchased — i.e., ultimately it is the “transaction” itself that needs to be “frictionless” and not the information alone which leads us to the transaction (although the access to “universal” information itself is indeed the starting point).

One clear example that comes to mind is Dell — arguably a “commodity” product in the “commoditized” desktop marketplace and subject to “commoditized” pricing (all of which are arguably the result of a “frictionless market”) — where there is however a “plethora” of “offers” and “specials” (let alone configuration restrictions) which appear to change daily — each with their own particular “conditions” and “limitations”. These apply not only to “pricing” but as noted also to “configurations” of products, etc.. I.e., the information that lead us to Dell in this example may have removed some “friction” in pricing information generally speaking — but certainly not necessarily at the transactional level itself.

Therefore, whereas I must agree that universal access to “open” information is the primary impetus towards frictionless markets by removing many of the disparities in pricing and even quality that exist between vendors — nonetheless at the “vendor level” the transaction often remains anything but “frictionless”.

Therefore, shopping comparison / pricing information alone isn’t sufficient to provide a truly frictionless market unless the product itself is a true “commodity” and there are no obvious restraints / limitations on the transaction itself — which as noted in the case of Dell ( (sorry to beat a “dead horse” but is a good example I believe given as referenced above it is arguably a “commodity” product in the “commoditized” desktop marketplace and subject to “commoditized” pricing) certainly isn’t the case given the above identified numerous restraints / conditions / limitations introduced into the actual transactional process itself.

http://tf1.lci.fr/infos/jt/0,,4102410,00-le-boom-du-e-commerce-alimentaire-.html

Helen

http://farecast.live.com/ – Predictive airfare

And, CellFire… VERY slick!

Grocio also matches coupons to what’s being put in the grocery basket. (Put away those scissors!)