Signaling game analysis of return service in electronic commerce

Electronic commerce breaks through the limiting factors in time and space, and improves the efficiency of the market evidently. On the other hand, electronic commerce is virtual, anonymous and open, these characteristics lead information asymmetry to be serious more and more. Nowadays, the problem of information asymmetry in return goods service becomes obvious gradually. Consumers can´t return the goods that they are not satisfied, even consumers buy the goods from sellers who claim that they provide return service. This problem seriously reduces consumer´s confidence in electronic commerce, also restricts further development of electronic commerce. This paper, from the view of signaling games, is attempted to discuss the different Bayesian equilibrium between sellers and consumers game in different cases of return service. Finally the paper find out the factors influenced the equilibrium, and brings reasonable suggestions to reduce information asymmetry in return service.