Comparison of the group-buying auction and the fixed pricing mechanism

Chen, Jian; Chen, Xilong; Song, Xinwei

doi:10.1016/j.dss.2006.11.002

Cited by 124 publications

(70 citation statements)

References 10 publications

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“…Crowdfunding and peer-to-peer lending are in the ascendant. A variety of literature has made efforts to delve into the forms of crowdfunding, such as an equity purchase, loan, or pre-order on a product [48][49][50][51][52], or the economic mechanisms of peer-to-peer lending [15,[53][54][55]. For example, Wei and Lin [15] both theoretically and empirically investigated how the supply and demand of funds in online peer-to-peer lending markets are matched, and the prices at which transactions will occur.…”

Section: Related Literaturementioning

confidence: 99%

Access to the Internet and Access to Finance: Theory and Evidence

Chen

Gong²,

Chu

et al. 2018

Sustainability

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This paper aims at investigating the relationship between the use of the Internet and access to external finance of small and micro businesses, both theoretically and empirically. We first develop a theoretical model to explore how access to the Internet affects the credit availability of firms. The model suggests that access to the Internet can effectively mitigate financing difficulty of firms by alleviating information asymmetry and reducing agency cost, and thus can promote the sustainable development of those firms. The model also shows that access to the Internet can improve social welfare based on aforementioned mechanism. Using China household finance data from China Household Finance Survey, we tested the impact of access to the Internet on access to finance of small and micro businesses. Our empirical results confirm the positive role played by access to the Internet in alleviating financing difficulty of those firms. Moreover, we also found evidence that access to the Internet can reduce borrowers' dependence on physical branches of banks when making bank choice decision for loan applications. Our evidence also implies that access to the Internet is conducive to the sustainable development of small and micro businesses via mitigating their financing difficulty.Keywords: access to the Internet; access to finance; sustainable development of small and micro businesses JEL Classification: G21; O16

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Section: Related Literaturementioning

confidence: 99%

Access to the Internet and Access to Finance: Theory and Evidence

Chen

Gong²,

Chu

et al. 2018

Sustainability

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“…In the presence of demand uncertainty, the group-buying mechanism is shown to outperform posted pricing under demand heterogeneity, economies of scale (Anand and Aron 2003), and risk-seeking sellers (Chen et al 2007). Group buying can also be used as a mechanism for price discrimination and advertising (Edelman et al 2010).…”

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confidence: 99%

Threshold Effects in Online Group Buying

Shi

2015

Management Science

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This paper studies two types of threshold-induced effects: a surge of new sign-ups around the time when the thresholds of group-buying deals are reached, and a stronger positive relation between the number of new sign-ups and the cumulative number of sign-ups before the thresholds are reached than afterwards. This empirical study uses a dataset that records the inter-temporal cumulative number of sign-ups for groupbuying deals in 86 city markets covered by Groupon, during a period of 71 days when Groupon predominantly used "a deal a day" format for each local market and posted the number of sign-ups in real time. We find that the first type of threshold effects is significant in all product categories and in all markets. The second type of threshold effects varies across product categories and markets. Our results underscore the importance of considering product and market characteristics in threshold design decisions for online group buying.

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“…They demonstrate that under demand uncertainty, group buying mechanism outperforms posted pricing under demand heterogeneity and production postponement in combination with scale economies. Based on their model, Chen and Chen [7] studied the groupbuying auction considering the risk seeking seller and different demand regimes. They analyze the sellers' optimal price curve of the GBA in the uniform unit cost case and in some supply chain coordination contracts.…”

Section: Studies On B2c Group Buying Mechanismmentioning

confidence: 99%

Supply Chain Coordination with Group Buying Through Buyback Contract

Ping

Shen

Lev

2015

Advances in Intelligent Systems and Computing

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Under group buying strategy, a retailer offers buyers price discount based on buyers' aggregate purchase quantity. This paper studies the supply chain coordination issue with a supplier and a retailer that uses group buying mechanism when selling to customers. We demonstrate that a buyback contract can coordinate the supply chain under group buying, and how its contract terms critically depend on the quantity threshold above which group buying deal is activated.

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Comparison of the group-buying auction and the fixed pricing mechanism

Cited by 124 publications

References 10 publications

Access to the Internet and Access to Finance: Theory and Evidence

Access to the Internet and Access to Finance: Theory and Evidence

Threshold Effects in Online Group Buying

Supply Chain Coordination with Group Buying Through Buyback Contract

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