Third Parth Subsidy is Not Effective towards Improving the Trading Efficiency for Most E-Business Markets

Research equipments in China were heavily underutilized. An e-business market was created to allow students to reserve available equipment service time from different universities; however, low trading success rate has been the bottleneck of the market efficiency. A third-party subsidy program is being considered to encourage equipment service providers (sellers) to lower their asking prices; hence it should improve the trading success rate. For varies reasons, most e-business markets have higher than usual price dispersion problems. Third-party subsidy program will not be as effective towards high price dispersal markets. Experimental results confirm that subsidy will provide little improvement towards the overall trading success rate, within a market with high price dispersion problem.