E-Commerce Predatory Pricing Issue,Internet User, Consumption and Economic Growth in Indonesia

English

Abstract

This study investigates the response between variables when getting impulses from other variables so that it can be seen the impact of predatory pricing in Indonesia if this is true by understanding the impact of the influence of prices represented by inflation. The inflation indicator was chosen because price movements generally have an impact on inflation movements. And the internet user variable was chosen as a response to internet literacy in Indonesia. The consumption variable was chosen because the desired effect of predatory pricing actors is the level of sales and market share which can be indicated by the level of consumption. The GDP variable is an indicator of the general economy in Indonesia. To achieve the objectives of this research, the Vector Autoregression model is used. We found that the internet has a considerable impact on economic growth and consumption. Internet literacy has a significant negative effect on the general price level in Indonesia. So that when a price war occurs that leads to predatory pricing, it will endanger the Indonesian economy. Considering the relationship between Internet literacy and Internet literacy is significantly negative, which means that the deeper Internet literacy in Indonesia has an impact on general price pressures, which means that the more commercial use of the Internet, the deeper prices will be. So that price wars and predatory pricing have the potential to occur in Indonesia with the increasingly massive use of the Internet in Indonesia. Consumption has a significant impact on economic growth. Internet literacy has an impact on consumption, GDP, and price levels. Where internet literacy provides a positive impetus to economic growth and consumption in Indonesia. However, internet literacy also has the potential to trigger price wars and predatory pricing that is dangerous to the economy in Indonesia.