Our study proposes a novel mechanism to reduce information asymmetry about product quality between buyers and sellers … providing credible information. However, limited capacity leads to testing of only a select number of product models, often … bestsellers, which can yield suboptimal information. After outlining our mechanism, we develop a game to derive testable …

-auction format - a mixture between sealed-bid and open second-price auction with a fixed end-time. Moreover, we find that information … available on eBay can be used as indicator for the price deviation and that sellers respond strategically to this information …