Physical and Electronic Wholesale Markets: An Empirical Analysis of Product Sorting and Market Function
| Autor: | Eric Overby, Sabyasachi Mitra |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Transaction cost
Information Systems and Management business.industry Yield (finance) Adverse selection Information technology Spot market Management Science and Operations Research Computer Science Applications Management Information Systems Supply and demand Product (business) business Database transaction Industrial organization |
| Zdroj: | Journal of Management Information Systems. 31:11-46 |
| ISSN: | 1557-928X 0742-1222 |
| DOI: | 10.2753/mis0742-1222310202 |
| Popis: | Markets can yield significant economic benefits by improving transaction efficiency, but effective design is necessary to achieve these benefits. We compare a physical market to a discrete electronic market in the wholesale used vehicle industry to evaluate how their different designs work for different types of transactions. We find that buyers and sellers balance adverse selection costs and other transaction costs when using the two markets, with the physical market serving as the general exchange and the electronic market serving as a spot market for vehicles with low adverse selection risk. These findings increase our understanding of how sellers and buyers distribute supply and demand between physical and electronic markets in industries in which they coexist. They also increase our understanding of how information technology can improve market function in wholesale environments. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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