We separate the “rentier” portion of the budget constraint of the representative agent from the “income-plus-distributed profits” segment. The former’s wealth consists exclusively of returns on government bonds, the latter’s wealth is wage income from working for firms plus the distributed profits of the latter. The non-neoclassical element is the non-imposition of the market-clearing assumptio...

Online game involves a very large number of users who are interconnected and interact with each other via the Internet. We studied the characteristics of exchanging virtual goods with real money through processes called “real money trading (RMT)”. Œis exchange might inƒuence online game user behaviors and cause damage to the reputation of game companies. We examined ingame transactions to revea...

China’s consumer-to-consumer (C2C) electronic market has been growing very rapidly. The largest Chinese online auction company. Eachnet. was purchased by eBay but faced tough competition from a new Chinese online auction company, Taobao. Now Taobao’s market share is twice as large as eBay’s. Why has eBay quickly lost its market share to the newly launched Taobao? What is the nature of this mark...

In this paper we study how online B2B exchanges affect buyer-supplier relationships where the exchange takes the role of a secondary market in which buyers (of the initial product) can trade excess inventory to address supply and demand imbalances. Businessto-Business (B2B) exchanges such as Converge for electronic parts, Aeroxchange for avionics, and Eurecat for Chemical catalysts, have attemp...

Free sampling in digital format has become a common business practice in the online market offering consumers first-hand experience with products, due to its low marginal cost and extensive online distribution. At the same time, online word of mouth (WOM) has also been a prevalent strategy on the Internet for increasing product visibility and providing trustworthy product information. Those two...