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Internet sellers must decide how customers pay shipping charges. Typically, these sellers choose between "uniform pricing," where the firm delivers to any customer at a fixed delivery charge, or "mill pricing," where the firm bills the customer a distancerelated shipping charge. This paper studies price competition between an internet seller and local retailers, and the internet seller's choice of pricing policy. It is found that for low customer willingness to pay, mill pricing is favored butdoi:10.1109/hicss.2010.471 dblp:conf/hicss/Lederer10 fatcat:vk5h7cmaxjbrlnjqughr3sj3pu