Multidimensional quality sorting between online and offline auctions: The role of attribute transparency

B-Tier
Journal: International Journal of Industrial Organization
Year: 2017
Volume: 53
Issue: C
Pages: 145-169

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze how sellers of used construction equipment sort products between online and offline auctions based on the quality and transparency of different machine attributes. Sellers are more likely to offer machines online if quality is high for attributes whose integrity can be measured via photo (e.g., appearance) and more likely to offer machines offline if quality is high for attributes whose integrity is more reliably evaluated in person (e.g., engine). Quality averaged across all attributes is unrelated to auction choice, meaning standard tests of adverse selection can mask the subtle but significant effects of asymmetric information in this market.

Technical Details

RePEc Handle
repec:eee:indorg:v:53:y:2017:i:c:p:145-169
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-26