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How different are consumers in Internet auction markets? Evidence from Japan and Taiwan

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  • Liu, Kang Ernest
  • Shiu, Ji-Liang
  • Sun, Chia-Hung

Abstract

This study provides evidence of consumers’ different attitudes toward asymmetric information in different Internet auction markets, using data of the iPod nano MP3 player from Yahoo! Japan Auctions and Yahoo! Kimo. The estimation results indicate that while non-positive reputation has a negative strong effect on new iPod nanos, but not for their used ones in Japan, seller reputation has a positive and significant effect on used iPod nanos, but little impact on new ones in Taiwan. In addition, auctions including shipping and handling charges significantly lower sale probability and increase auction prices in Japan, but this is not the case for Taiwan.

Suggested Citation

  • Liu, Kang Ernest & Shiu, Ji-Liang & Sun, Chia-Hung, 2013. "How different are consumers in Internet auction markets? Evidence from Japan and Taiwan," Japan and the World Economy, Elsevier, vol. 28(C), pages 1-12.
    • Handle: RePEc:eee:japwor:v:28:y:2013:i:c:p:1-12
    DOI: 10.1016/j.japwor.2013.06.001
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    More about this item

    Keywords

    Internet auction; Sample selection model; Japan; Taiwan;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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