Adverse Selection in Online Search

Kumar, Nitish; Rai, Prerna

doi:10.1109/dexa.2008.93

Cited by 1 publication

(1 citation statement)

References 11 publications

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“…Fabel and Lehmann (2000) took Volkswagen and BMW as their sample and found that sellers of high-quality cars can avoid the adverse selection problem if they set a reserve price or a minimum acceptable price. Kumar and Rai (2008) used search engine results to establish a system to measure adverse selection problems. Grabner-Kräuter and Kaluscha (2003) pointed out that efficient online transactions depend on both hardware and software, as well as on the technical environment of 'last leg' secure data exchange, which is the key to eliminating or reducing the network lemon problem.…”

Section: Literature Reviewmentioning

confidence: 99%

E-marketing under the adverse selection environment: model and case study

Yong

2014

IJNVO

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Information asymmetry in the e-commerce market causes an adverse selection phenomenon ('lemons' problem) that has a negative impact on e-marketing. Based on the classic adverse selection model, this paper set up e-marketing models. The models fully took into account the qualitative preference of e-consumers and the role of quality intermediaries under adverse selection environments. Actual data from Taobao serves as a case study to analyse the characteristics of adverse selection. The results show that reputation evaluation systems and business alliance system can reduce the adverse selection problem in e-commerce market. The quality intermediary as a trusted third party or market quality expert can help eliminate cyber lemons. However, along with the e-marketing strategy counteracting adverse selection, there are some phenomena strengthening consumers' distrust. This may result in a vicious cycle and affect the function of e-marketing. This paper analyses the existing issues and suggests solutions to enable e-sellers and e-buyers to trade credibly.

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Section: Literature Reviewmentioning

confidence: 99%

E-marketing under the adverse selection environment: model and case study

Yong

2014

IJNVO

View full text Add to dashboard Cite

show abstract

Adverse Selection in Online Search

Cited by 1 publication

References 11 publications

E-marketing under the adverse selection environment: model and case study

E-marketing under the adverse selection environment: model and case study

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