• Search Research Projects
  • Search Researchers
  • How to Use
  1. Back to previous page

Experimentation in Online Markets

Research Project

Project/Area Number 20K01560
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeMulti-year Fund
Section一般
Review Section Basic Section 07010:Economic theory-related
Research InstitutionKyoto University

Principal Investigator

Chen Chia-Hui  京都大学, 経済研究所, 准教授 (20768238)

Project Period (FY) 2020-04-01 – 2023-03-31
Project Status Completed (Fiscal Year 2022)
Budget Amount *help
¥3,640,000 (Direct Cost: ¥2,800,000、Indirect Cost: ¥840,000)
Fiscal Year 2022: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2021: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2020: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Keywordsrating system / online platform / adverse selection / dynamic game / social learning / experimentation / online reviews
Outline of Research at the Start

We first emphasize frictions on platforms. With buyers of different traits and sellers' manipulations, we show that without a good design, online reviews may slow down the learning process. We will further consider more complicated purchase environment, such as selection among several alternatives.

Outline of Final Research Achievements

Despite widespread use in online transactions, rating systems only provide summary statistics of buyers' diverse opinions at best. To investigate the consequences of this coarse form of information aggregation, we consider a dynamic lemons market in which buyers share their evaluations anonymously through a rating system. When the buyers have diverse preferences, the value of a good rating depends endogenously on the seller's pricing strategy, which in turn creates complicated dynamic interactions and results in stochastic price fluctuations. Occasional flash sales induced by the rating system yield a non-trivial welfare effect that stands in sharp contrast to standard adverse selection models: all buyers are weakly better off with information asymmetry than without. Incentivizing buyers to leave ratings may backfire by exacerbating the seller's strategic pricing incentives.

Academic Significance and Societal Importance of the Research Achievements

Papers studying social learning with online reviews indicate that online reviews help improve efficiency in social learning. However, the ease of information access also creates manipulations and generate additional costs. This project fills this gap between the existing literature and the reality.

Report

(4 results)
  • 2022 Annual Research Report   Final Research Report ( PDF )
  • 2021 Research-status Report
  • 2020 Research-status Report
  • Research Products

    (11 results)

All 2023 2022 2021

All Journal Article (4 results) (of which Peer Reviewed: 4 results) Presentation (7 results) (of which Invited: 7 results)

  • [Journal Article] Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition2023

    • Author(s)
      Chia-Hui Chen, Junichiro Ishida, and Arijit Mukherjee
    • Journal Title

      European Economic Review

      Volume: 152 Pages: 104360-104360

    • Related Report
      2022 Annual Research Report
    • Peer Reviewed
  • [Journal Article] Signaling under Double-Crossing Preferences2022

    • Author(s)
      Chia-Hui Chen, Junichiro Ishida, and Wing Suen
    • Journal Title

      Econometrica

      Volume: 90 Pages: 1225-1260

    • NAID

      40022502420

    • Related Report
      2022 Annual Research Report
    • Peer Reviewed
  • [Journal Article] A War of Attrition with Experimenting Players2021

    • Author(s)
      Chia-Hui Chen and Junichiro Ishida
    • Journal Title

      Journal of Industrial Economics

      Volume: 69 Pages: 239-269

    • NAID

      40022347146

    • Related Report
      2021 Research-status Report
    • Peer Reviewed
  • [Journal Article] Reputation Concerns in Risky Experimentation2021

    • Author(s)
      Chia-Hui Chen, Junichiro Ishida, and Wing Suen
    • Journal Title

      Journal of the European Economic Association

      Volume: 19 Pages: 1981-2021

    • NAID

      40022347367

    • Related Report
      2021 Research-status Report
    • Peer Reviewed
  • [Presentation] Signaling under Double-Crossing Preferences2023

    • Author(s)
      Chia-Hui Chen
    • Organizer
      National Yang Ming Chiao Tung University
    • Related Report
      2022 Annual Research Report
    • Invited
  • [Presentation] Social Learning and Strategic Pricing with Rating Systems2022

    • Author(s)
      Chia-Hui Chen
    • Organizer
      Academia Sinica
    • Related Report
      2022 Annual Research Report
    • Invited
  • [Presentation] Social Learning and Strategic Pricing with Rating Systems2022

    • Author(s)
      Chia-Hui Chen
    • Organizer
      National Normal University
    • Related Report
      2022 Annual Research Report
    • Invited
  • [Presentation] Social Learning and Strategic Pricing on Online Platforms2022

    • Author(s)
      Chia-Hui Chen
    • Organizer
      Research Center for Humanities and Social Sciences, Academia Sinica
    • Related Report
      2021 Research-status Report
    • Invited
  • [Presentation] Social Learning and Strategic Pricing on Online Platforms2022

    • Author(s)
      Chia-Hui Chen
    • Organizer
      Institute of Economics, Academia Sinica
    • Related Report
      2021 Research-status Report
    • Invited
  • [Presentation] Social Learning and Strategic Pricing on Online Platforms2021

    • Author(s)
      Chia-Hui Chen
    • Organizer
      Concordia University
    • Related Report
      2021 Research-status Report
    • Invited
  • [Presentation] Social Learning and Strategic Pricing on Online Platforms2021

    • Author(s)
      Chia-Hui Chen
    • Organizer
      University of Tokyo
    • Related Report
      2021 Research-status Report
    • Invited

URL: 

Published: 2020-04-28   Modified: 2024-01-30  

Information User Guide FAQ News Terms of Use Attribution of KAKENHI

Powered by NII kakenhi