Fox School of BusinessIdea Marketplace

Does Uncertainty about an Online Product Affect Price?


March 29th, 2013

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This study conceptualizes product uncertainty and examines its effects and antecedents in online markets for used cars. Using a unique dataset comprised of secondary transaction data from used cars on eBay Motors matched with primary data from 331 buyers who bid on these used cars. The results distinguish between product and seller uncertainty, show that product uncertainty has a stronger effect on price premiums than seller uncertainty, and identify the most influential information signals that reduce product uncertainty.

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