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We analyze data on tens of thousands of alternating-offer, business-to-business negotiations in the wholesale used … mediating the negotiations. We find that who intermediates the negotiation matters: high-performing mediators are 22.03% more … negotiations, overcoming some of the inefficiency inherent in incomplete-information settings …
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Since Akerlof (1970), economists have understood the adverse selection problem that information asymmetries can create in used goods markets. The remarkable growth in online used goods auctions thus poses a puzzle. Part of the solution is that sellers voluntarily disclose their private...
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