Seller Organization and Percentage Fee Design in the Daily Deal Market

2021 ◽  
Author(s):  
Yao Tang ◽  
Xu Guan
Keyword(s):  
Information Asymmetry ◽  
Equilibrium Strategies ◽  
Segmentation Strategy ◽  
Online Platforms ◽  
Pricing Efficiency ◽  
Internal Information

The prosperity of the daily deal business has attracted more sellers to participate in daily deal campaigns with offering discounted deals via online platforms like Groupon and Juhuasuan. This gives rise to a new challenge for online platforms on how to efficiently organize a limited number of sellers to conduct daily deal campaigns. Our paper makes the first attempt to understand how different seller organization formats can influence the firms’ equilibrium strategies and profits in the daily deal market. We focus on two prevalent seller organization formats. (1) The seller agglomeration strategy: the platform (e.g., Groupon) does not distinguish the sellers’ type in each round of the campaign. (2) The seller segmentation strategy: the platform (e.g., Juhuasuan) organizes sellers of the same type in each round. Comparing to the agglomeration strategy, we show that the segmentation strategy can eliminate internal information asymmetry among competing sellers and thus can improve the sellers’ pricing efficiency and facilitate the platform to charge a higher percentage fee. This uncovers the value of seller segmentation and theoretically explains why platforms should carefully segmentate sellers in daily deal campaigns, although considerable efforts are required to enroll sellers.

Clarity Begins at Home: Internal Information Asymmetry and External Communication Quality

2017 ◽  
Vol 93 (1) ◽  
pp. 71-101 ◽  
Author(s):  
Chen Chen ◽  
Xiumin Martin ◽  
Sugata Roychowdhury ◽  
Xin Wang ◽  
Matthew T. Billett
Keyword(s):  
Information Asymmetry ◽  
Management Forecasts ◽  
Communication Quality ◽  
Corporate Managers ◽  
External Communication ◽  
Top Managers ◽  
Internal Information ◽  
The Difference ◽  
Validation Tests

ABSTRACT This paper investigates the effect of internal information asymmetry (IIA) within conglomerate firms on the quality of management forecasts and financial statements. We develop a novel measure to capture IIA between divisional managers and top corporate managers, computed as the difference in their respective trading profits on their own company's stock (DIFRET). Numerous validation tests indicate that DIFRET indeed captures the information asymmetry between divisional managers and top managers. In our primary tests, we find that DIFRET is associated negatively with the accuracy, bias, specificity, and frequency of management forecasts. Furthermore, the likelihood of error-driven accounting restatements increases with DIFRET. Our results, thus, suggest that external communication quality suffers when the information asymmetry between divisional managers and top managers is more severe.

Newspaper Censorship in China: Evidence from Tunneling Scandals

2021 ◽  
Author(s):  
Ole-Kristian Hope ◽  
Yi Li ◽  
Qiliang Liu ◽  
Han Wu
Keyword(s):  
Information Asymmetry ◽  
Price Discovery ◽  
Economic Consequences ◽  
Political Pressure ◽  
Significant Evidence ◽  
Pricing Efficiency ◽  
Negative News ◽  
Local Levels

Media dissemination plays an important role in facilitating price discovery. Political pressure that restricts media dissemination can hinder this function and affect investors’ perceptions. This paper studies the magnitude of newspaper censorship in China and its economic consequences using a setting of tunneling scandals. We find significant evidence of censorship of tunneling-related negative news at the national and local levels. We further show that news that survives censorship reduces information asymmetry and improves pricing efficiency. Censorship blocks informative tunneling news and delays incorporation of tunneling reporting into prices. This paper was accepted by Brian Bushee, accounting.

scholarly journals Information Asymmetry and Its Implications in Online Purchasing Behaviour: A Country Case Study

2020 ◽  
Vol 12 (1) ◽  
pp. 72-82
Author(s):  
Esmir Demaj ◽  
Vilma Manjani
Keyword(s):  
Decision Making ◽  
Correlation Analysis ◽  
Information Asymmetry ◽  
Research Model ◽  
Multiple Sources ◽  
Traditional Markets ◽  
Online Platforms ◽  
Country Case Study ◽  
Purchasing Behaviour

The objective of this study is to analyse how certain variables in the online market affect the decision-making trajectory and actions toward reducing the information asymmetry faced in online purchasing. A survey and observation are conducted in order to understand the behavior and perceptions of online buyers toward the information given in online platforms. Descriptive and correlation analysis have been employed in order to evaluate the data collected and test the correlation between variables of the research model. It results that most participants take for granted the fact that sellers have more information than them when entering into a transaction agreement and this makes them feel inferior towards the superior power sellers possess in such interactions. This makes the traditional markets more preferred for them, however multiple sources such as reviews and ratings result as an alternative way of reducing the perceived information asymmetry.

On closed-loop equilibrium strategies for mean-field stochastic linear quadratic problems

2020 ◽  
Vol 26 ◽  
pp. 41
Author(s):  
Tianxiao Wang
Keyword(s):  
Optimal Control ◽  
Closed Loop ◽  
Optimal Control Problems ◽  
Mean Field ◽  
Open Loop ◽  
Time Inconsistency ◽  
Control Problems ◽  
Linear Quadratic ◽  
Linear Quadratic Optimal Control ◽  
Equilibrium Strategies

This article is concerned with linear quadratic optimal control problems of mean-field stochastic differential equations (MF-SDE) with deterministic coefficients. To treat the time inconsistency of the optimal control problems, linear closed-loop equilibrium strategies are introduced and characterized by variational approach. Our developed methodology drops the delicate convergence procedures in Yong [Trans. Amer. Math. Soc. 369 (2017) 5467–5523]. When the MF-SDE reduces to SDE, our Riccati system coincides with the analogue in Yong [Trans. Amer. Math. Soc. 369 (2017) 5467–5523]. However, these two systems are in general different from each other due to the conditional mean-field terms in the MF-SDE. Eventually, the comparisons with pre-committed optimal strategies, open-loop equilibrium strategies are given in details.

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