Social information filtering: algorithms for automating “word of mouth”
CHI '95 Proceedings of the SIGCHI Conference on Human Factors in Computing Systems
Do electronic marketplaces lower the price of goods?
Communications of the ACM
Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Information technology and screen-based securities trading: pricing the stock and pricing the trade
Management Science - Special issue: Frontier research on information systems and economics
Reengineering the Dutch Flower Auctions: a Framework for Analyzing Exchange Organizations
Information Systems Research
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Manheim auctions: transforming interorganizational relationships with an extranet
International Journal of Electronic Commerce - Special issue: Electronic commerce and market transformation
Seller Search and Market Outcomes in Online Auctions
Management Science
Ushering Buyers into Electronic Channels: An Empirical Analysis
Information Systems Research
Price Discovery in the U.S. Treasury Market: Automation vs. Intermediation
Management Science
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Many markets that have traditionally relied on collocation of buyers, sellers, and products have introduced electronic channels. Although these electronic channels may provide benefits to buyers and sellers by lowering the transaction costs of participating in the market, there are trade-offs related to quality uncertainty and increased risk that may limit the adoption of the electronic channels. As a result, buyers and sellers use physical channels for some transactions and electronic channels for others. These usage patterns may evolve over time, particularly when the electronic channels are new. We examine buyer and seller use of electronic and physical channels in a market for products of uncertain quality (used vehicles) over a 2.5-year period. Results indicate that transactions involving low quality uncertainty and relatively rare products occurred in the electronic channels, whereas transactions involving high quality uncertainty and relatively plentiful products occurred in the physical channels. These patterns became clearer over time as buyers and sellers gained experience with the electronic channels. The electronic channels led to discounts for products of high quality uncertainty, but not for those of low quality uncertainty.