Paper Type

Complete

Paper Number

1194

Description

Wholesalers frequently source products from multiple channels. While firms can exploit the discrepancy in information between different platforms, especially in auction contexts, there is a lack of studies on information disclosure in a multichannel auction setting. In this study, we examine how the information from a digital channel can shape the price dynamics in the traditional B2B auction market. By utilizing a rich dataset of a year of trading at the world’s largest B2B floriculture market, we find that while auction prices tend to decline over time in a Dutch auction, the information from the online channel can relieve this declining trend. This positive effect, however, is not maintained over time during the fast-paced auction setting. Producers’ posted prices tend to lose their effects as the auction progresses.

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E-Business

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Jul 2nd, 12:00 AM

Price Dynamics and Information Disclosure in B2B Multichannel Markets

Wholesalers frequently source products from multiple channels. While firms can exploit the discrepancy in information between different platforms, especially in auction contexts, there is a lack of studies on information disclosure in a multichannel auction setting. In this study, we examine how the information from a digital channel can shape the price dynamics in the traditional B2B auction market. By utilizing a rich dataset of a year of trading at the world’s largest B2B floriculture market, we find that while auction prices tend to decline over time in a Dutch auction, the information from the online channel can relieve this declining trend. This positive effect, however, is not maintained over time during the fast-paced auction setting. Producers’ posted prices tend to lose their effects as the auction progresses.

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