Title :
Adverse Selection and Counteracting Mechanism in Taobao.com
Author_Institution :
Dept. of Logistics & E-Commerce, Henan Univ. of Econ. & Law, Zhengzhou, China
Abstract :
As the network gets rid of the limit of space and bring up the virtual reality in the e-commerce market, adverse selection resulting from the informational asymmetry of the qualitative uncertainty is getting worse, which is restricting the useful and profitable business. Based on the data from Taobao (www.taobao.com), this paper demonstratively analyzes the characteristics of cyber adverse selection problem in e-commerce market and discuss the function of counteracting mechanism such as credit evaluation system , quality-intermediary and reputation. Finally, this paper offers some strategic thought for eliminating the cyber adverse selection problem.
Keywords :
Internet; electronic commerce; virtual reality; Taobao.com; counteracting mechanism; credit evaluation system; cyber adverse selection problem; e-commerce; informational asymmetry; qualitative uncertainty; quality-intermediary; virtual reality; Business; Economics; Equations; Internet; Linear regression; Marketing and sales; Mathematical model;
Conference_Titel :
Management and Service Science (MASS), 2011 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-6579-8
DOI :
10.1109/ICMSS.2011.5999171
