Conventional wisdom suggests that non-local buyers usually pay a premium for home purchases. While the standard contract theory predicts that non-local buyers may pay such a price premium because of the higher cost of gathering information, behavioral economists argue that the premium is due to...

Problem definition: We consider a customer-to-customer (C2C) platform that provides an inspection service. Uncertain about his product’s authenticity, a seller sells his product through the platform. Before purchasing, a buyer obtains a signal of the product authenticity from the product’s...

Despite its rising popularity, transparency is still a not well-understood concept as there is no general agreement regarding its definition and construct in brand marketing. This research aims to solidify our understanding of transparency by validating the key characteristics of transparent...

In many markets, buyers sign advance contracts before actual decisions on transactions or consumptions are made. Therefore, a buyer may have private information on expected payoff at the contracting stage and, as time moves on, new information on other components of payoff may arrive. However,...

Consumers are often uncertain about their product valuation before purchase. They may bear the uncertainty and purchase the product without deliberation. Alternatively, consumers can incur a deliberation cost to nd out their true valuation and then make their purchase decision. This paper...

Federal agencies plan to outsource 33% of their information technology projects in 2003. In addition, much of the management and collection of personal data by state and federal government agencies has been outsourced. Recent events have demonstrated that this information has enormous value,...

Agents' valuations are interdependent if they depend on the signals of all agents. Previous literature has claimed that with interdependent valuations and multidimensional, but independent, signals, efficient auction design is impossible. This paper shows that, on the contrary, it is always...

This article is about a market for credence goods. With a credence good, consumers are never sure about the extent of the good they actually need. Therefore, sellers act as experts determining the customers' requirements. This information asymmetry between buyers and sellers obviously creates...

Information Technology (IT) such as blockchains, radio-frequency identification (RFID), and Internet of Things (IoT) allow firms and consumers to trace the physical flow of products along a supply chain. Although this improvement in information transparency helps enhance product safety and...

We investigate if directors of Australian companies can generate abnormal returns on their reported trades, if these abnormal returns are significant enough to be mimicked by outsiders, and if insider trades have an effect on returns of other investors. We find that insiders take advantage of...