The purpose of this paper is to explore whether sellers can create extra profit through information premiums. Phenomena surrounding asymmetrical information transmission among buyers is also explored..
This paper uses three experimental designs to manipulate asymmetrical information acquisition among buyers (including insiders and outsiders) by exploring the related effects in online auctions. Questionnaires are used to collect the final willing‐to‐pay auction prices for buyers in each situation. The analyses are performed with SPSS software, using paired t‐tests and ANCOVA analysis.
Information premiums between insiders and outsiders are significantly different under diverse manipulative factors. ANCOVA shows a significant relationship in information traits, information acquisition costs, brand signals and information premiums among buyers.
The paper employs a highly‐involved design and only considers one product category: MP3 players; other types of products are not included.
The results show that sellers can create extra profit through information traits, information acquired cost, and brand signals; results are from the asymmetrical information transmission process among buyers.
This research is one of the first that attempts to explore the asymmetrical information transmission process and effects among buyers in online auctions.
Wu, J. and Huei Wang, S. (2010), "Exploring asymmetrical information transmission processes in online auctions", Internet Research, Vol. 20 No. 5, pp. 495-508. https://doi.org/10.1108/10662241011084077Download as .RIS
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