We analyze strategic relationships between buyers and sellers in markets with relationship-specific costs and exogenous dynamic uncertainty by investigating the scenario wherein a representative buyer trades with two sellers in a different country. We show that under exchange rate uncertainty, relationship-specific costs may either raise or lower competition and the level of prices in long-term...

In housing markets, neighborhood characteristics are a key source of information heterogeneity: sellers are usually better informed about neighborhood values than buyers are, but some sellers and buyers are better informed than their peers are. Consistent with predictions from a new framework for analyzing such markets with heterogeneous assets and differentially informed agents, we find that c...

We endogenize the trade mechanism in a search economy with many homogenous sellers and many heterogenous buyers of unobservable type. We study how heterogeneity and the traders’ continuation values—which are endogenous—inßuence the sellers’ choice of trade mechanism. Sellers trade off the probability of an immediate sale against the surplus expected from it, choosing whether to trade with every...

Buyers often search across multiple retailers or websites to learn which product best fits their needs. We study how sellers manage these search incentives through their disclosure policies (e.g. advertisements, product trials and reviews), and ask how competition affects information provision. If sellers can observe the beliefs of buyers (e.g. they can track buyers via their cookies) then, in ...

We examine whether short sellers predominantly target stocks with recent price declines, amplifying the price decline and resulting in prices falling below fundamental values, or target apparently overpriced stocks facilitating prices that reflect fundamental values. We find evidence of short-sellers holding significant positions in stocks following price declines, and of short-sellers increasi...

Based on research documenting competition neglect, it was hypothesized that high demand markets would tend to exhibit excessive entry. This hypothesis was tested analyzing eBay data. As predicted it was found that a disproportionate number of sellers end their auctions during peak bidding hours, leading such hours to be less profitable. Additional analyses allow the categorization of sellers ba...

There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a do...

Unlike most previous studies on Buy-It-Now (BIN) auctions, this study investigates factors that affect the level of use of BIN auctions by sellers. This study proposes a conceptual model in which product types and culture are two important factors affecting sellers’ decisions on the level of use of BIN auctions. The empirical investigation exhibits that sellers of homogeneous products are more ...