Electronic trade introduces agents|sellers and buyers|with multiple challenges. In this paper we address one of these challenges. We provide new understandings regarding strategies that agents, each representing a buyer or a seller, can use in dynamic electronic markets. In particular, we examine strategies for sellers to decide which purchase-orders to satisfy in the face of stock shortages. W...

More and more people sell things online and trust is an important factor in online selling. This research is aimed at understanding the roles of trust in online sellers’ continued use of online auction marketplaces. Given the uniqueness of online auction practice, we identify the need for differentiating sellers’ trust in the intermediary and in buyers. A balanced view of cognitive and affectiv...

Contrary to conventional wisdom that sharing negative information hurts, many sellers voluntarily disclose weaknesses of their products in markets where information asymmetry is high. This paper provides an explanation on this type of seller’s honesty by developing a framework where sellers with low-quality products can benefit from a disclosure of negative information. We consider a lemon-mark...

Consumer-to-Consumer (C2C) e-marketplaces cannot survive without participations from both a large number of buyers and sellers. Prior research on trust in e-commerce is mainly conducted from the buyers’ perspective. Combined with TAM constructs, this research explores the relative impacts of trust in terms of trust in market-maker and institution-based trust, and risk on individual’s transactio...

In this study, we use a proprietary data set from an online marketplace to study the conversion rate dynamics in online retail. We examine how seller-level covariates, such as online sellers’ pricing and product strategies, marketing efforts, service responsiveness, reputation scores, product quality ratings, and other attributes, affect conversion rates. Specifically, we address the following ...

E-commerce is expected to achieve high market penetration if coupled with the appropriate technologies. Mobile Agent Technology (MAT) may enhance the intelligence and improve the efficiency of systems in the e-marketplace. Such a highly competitive and extremely dynamic market should encompass mechanisms for enabling users (Buyers) to find the most appropriate service providers (Sellers), i.e.,...

We analyze a market in which sellers compete for heterogeneous buyers by posting mechanisms. A general meeting technology governs how buyers and sellers meet. We introduce a one-to-one transformation of this meeting technology that helps to clarify and extend many of the existing results in the literature, which has focused on two special cases: urn-ball and bilateral meetings. We show that the...

Abstract: The purpose of this paper is to study the effects of entry into the market for a single commodity in which both sellers and buyers are permitted to interact strategically. With the inclusion of an additional seller, the market is quasi-competitive: the price falls and volume of trade increases, as expected. However, contrary to the conventional wisdom, existing sellers’ payoffs may in...

This paper measures the effectiveness of platform endorsement and consumergenerated reputation on sellers’ demand in online service marketplace. We apply BLPstyle model to understand consumers’ heterogeneous sensitivity to platform endorsement and consumer-generated reputation with endogeneity issue handled nicely. In addition, we investigate “conform or to be cast out” policy, which is applied...

We consider marketplaces where buyers and sellers iteratively encounter to trade. Given some specific trade conditions, the question that we address is what strategies should buyers and sellers use to maximize gains. We focus on electronic markets where supply shortages are common. Under such market conditions sellers can only satisfy a subset of the purchase-orders they receive from buyers. Co...