Abstract

Online marketplaces leverage information technology to bring together buyers and sellers, with greater effectiveness at massive scales; however, online marketplaces have a larger than usual price dispersion; hence it affects the trading efficiency. A simple third- party subsidy program is presented to encourage sellers to lower their selling prices; it should therefore offset the price dispersion problem and improve the trading efficiency. Experimental results show that third-party subsidy program can indeed improve trading success rate during high price dispersion trading condition. Keywords: Online Marketplace; Quantitative Subsidy; Trading Efficiency; Trading Success Rate

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.