Eliminating the cyber 'lemons' problem with the e-reputation in e-commerce market: theoretical model and practice

Authors:
Yong Pan
Affiliations:
Department of Logistics and E-Commerce, Henan University of Finance and Economics, No. 80 Wenhualu Road, Zhengzhou 45002, China
Venue:
International Journal of Networking and Virtual Organisations
Year:
2011

Citing 4
Cited 1

Do electronic marketplaces lower the price of goods?

Communications of the ACM
Analyzing the economic efficiency of eBay-like online reputation reporting mechanisms

Proceedings of the 3rd ACM conference on Electronic Commerce
The Economics of Electronic Commerce

The Economics of Electronic Commerce
Evidence of the effect of trust building technology in electronic markets: price premiums and buyer behavior

MIS Quarterly

Channel conflicts and market segments between e-commerce market and traditional market: based on the adverse selection perspective

International Journal of Networking and Virtual Organisations

Quantified Score

Hi-index	0.00

Visualization

Abstract

Well reputation has a very important effect in eliminating 'lemons' problem that results from informational asymmetry. Its essence is to establish the trust between buyers and sellers. Based on the 'lemons' principle put forward by US economist George Akerlof who is one of Nobel Economics Prize Laureates in 2001, this paper set up an e-reputation model in e-commerce market, and analyse the mechanism of the e-reputation in order to offer a strategic thought for eliminating the cyber 'lemons' problem with the e-reputation. The author also puts forward some ideas and concepts such as 'separating equilibrium', 'e-reputation rent' and 'chains of e-reputation'. For providing empirical evidence, the paper discusses the cases from AUCNET (Japan) and TAOBAO (China).