Multidimensional Quality Sorting between Online and Offline Auctions: The Role of Attribute Transparency

51 Pages Posted: 24 Jan 2019

See all articles by Jafar Olimov

Jafar Olimov

Research Center SHARQ

Brian E. Roe

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Date Written: April 2017

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.

Keywords: platforms, eBay, sorting, auctions

JEL Classification: L15, L11, D44

Suggested Citation

Olimov, Jafar and Roe, Brian E., Multidimensional Quality Sorting between Online and Offline Auctions: The Role of Attribute Transparency (April 2017). Available at SSRN: https://ssrn.com/abstract=3314862 or http://dx.doi.org/10.2139/ssrn.3314862

Jafar Olimov (Contact Author)

Research Center SHARQ ( email )

21 Lohuti street, ap. 1
Dushanbe, 734013
Tajikistan

Brian E. Roe

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States
614-688-5777 (Phone)

HOME PAGE: http://https://aede.osu.edu/our-people/brian-e-roe

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