This paper studies markets plagued with asymmetric information on the quality of traded goods. In Akerlof's setting, sellers are better informed than buyers. contrast, we examine cases where buyers sellers. creates an inverse adverse selection problem: market tends to disappear from bottom rather top. contrast traditional model, it is high-value goods (gems) that market, low-value (lemons). We ...

In online shopping buyers do not have enough information about sellers and cannot inspect the products before purchasing them. To help buyers find reliable sellers, online marketplaces deploy Trust and Reputation Management (TRM) systems. These systems aggregate buyers feedback about the sellers they have interacted with and about the products they have purchased, to inform users within the mar...

In e-commerce based online marketplaces, information asymmetry is a big problem. On one hand, the buyers need to learn more than just the price to make decisions whether to buy from a particular seller; on the other hand, the sellers need to distinguish themselves from sellers selling goods of worse quality. Without a well established mechanism to prevent this kind of moral hazard problem, the ...

In a durable good market where sellers have private information about quality, I identify certain problems in dynamic trading and sorting that arise in the presence of heterogeneity among buyers. Higher valuation buyers may have have lower incentive to wait to buy better quality at a later time period. As a result, even though higher quality sellers may wait to sell later at higher prices and d...

Sellers of perishable goods increasingly use dynamic pricing strategies as technology makes it easier to change prices and track inventory. This paper tests how accurately theoretical models of dynamic pricing describe sellers’ pricing behavior in secondary markets for event tickets, which are a classic example of a perishable good. It shows that some of the simplest dynamic pricing models desc...

Many researchers show that “market institutions” are an ideal means to exchange and allocate resources under the assumptions of perfect and symmetric information and perfect competition. However, in the real world, we observe many instances in which these assumptions are not satisfied due to imperfect competition, incomplete information, transaction costs, and externalities. In this study we fo...

Sellers of perishable goods increasingly use dynamic pricing strategies as technology makes it easier to change prices and track inventory. This paper tests how accurately theoretical models of dynamic pricing describe sellers’ pricing behavior in secondary markets for event tickets, which are a classic example of a perishable good. It shows that some of the simplest dynamic pricing models desc...

The Internet provides an unprecedented capability for sellers to learn about their customers and offer custom products at special prices. In addition, customization is more feasible today because of advances in manufacturing technologies that have improved sellers’ manufacturing flexibility. We first develop a model of product customization and flexible pricing to incorporate the salient roles ...

The formula of Black and Scholes for the valuation of options has led to the great development of mathematical finance. Mathematical finance is attracting more and more attention of researchers. Some useful work has been done, but the majority of discussions are based on perfect markets. A perfect market includes the following conditions: (1) many buyers; (2) many sellers; (3) individual trades...

In spot markets for trading fishes, single-sided auctions are used for clearing the market by virtue of its promptness and simplicity, which are important in dealing with perishable goods. However, in those auctions, sellers cannot participate in price-making process. A standard double auction market collects bids from traders and matches buyers’ higher bids and sellers’ lower bids to find the ...