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Reducing information asymmetry in the auctioning of non-perishable experience goods: the case of online wine auctions

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dc.contributor.authorOnur, I.
dc.contributor.authorBruwer, J.
dc.contributor.authorLockshin, L.
dc.date.issued2020
dc.descriptionData source: Supplementary data, https://doi.org/10.1016/j.jretconser.2020.102060
dc.description.abstractWe highlight the importance of reducing the perceived risk associated with information asymmetry for experience goods. We analyse a major online non-perishable experience good, wine, from the seller's perspective. The mechanism for lowering information asymmetry is the verification service offered by the auctioneer. By focusing on unsold items/lots, the wine and auction characteristics affecting the probability of a sale are identified. Results show that the verification of the wine's provenance increases the probability of sale by 5.7 percent and leads to an expected increase of 5.1 percent in the auction price. When both effects are combined, the increase in the expected revenue of the seller is 7.3 percent. We test and find no evidence of selection bias. Given the heterogeneity in wine prices, a quantile regression analysis shows how the results differ for high-priced wines compared to lower priced wines. Results highlight how the mechanisms to lower the degree of information asymmetry work both in attracting bidders to online auctions and encouraging bidders to submit higher bids
dc.identifier.citationJournal of Retailing and Consumer Services, 2020; 54(102060):1-13
dc.identifier.doi10.1016/j.jretconser.2020.102060
dc.identifier.issn0969-6989
dc.identifier.issn1873-1384
dc.identifier.urihttps://hdl.handle.net/11541.2/141106
dc.language.isoen
dc.publisherElsevier
dc.rightsCopyright 2020 Elsevier Access Condition Notes: Accepted manuscript available after 1 April 2023
dc.source.urihttps://doi.org/10.1016/j.jretconser.2020.102060
dc.subjectinformation asymmetry
dc.subjectnon-perishable experience good
dc.subjectonline auction
dc.subjectwine
dc.subjectrisk reduction
dc.titleReducing information asymmetry in the auctioning of non-perishable experience goods: the case of online wine auctions
dc.typeJournal article
pubs.publication-statusPublished
ror.fileinfo12197319600001831 13197319590001831 'Reducing information CS
ror.mmsid9916375288701831

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