Does an information service provider improve the market?

Kenju Akai; Keiko Aoki; Nariaki Nishino

doi:10.1007/978-3-642-41263-9_4

Does an information service provider improve the market?

Kenju Akai, Keiko Aoki, Nariaki Nishino

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

This study aims to theoretically analyze whether the information service provider improves the market efficiency. We construct a model where a good supplied by a producer has a risk to be harmful for a consumer because of an accident and it brings monetary losses to both consumers and producers. The accident risk is endogenously determined by the efforts of producers and consumers and the information of safety provided by the producers. The information service provider requires producers to provide information and certifies the credibility of information. In the equilibrium, if the entry cost for the information service provider is small, the optimal effort levels spent by the consumer and producer increase and the risk of accident decreases, which improves the market efficiency.

Original language	English
Title of host publication	Advances in Production Management Systems
Subtitle of host publication	Sustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings
Editors	Vittal Prabhu, Marco Taisch, Dimitris Kiritsis
Publisher	Springer New York LLC
Pages	26-32
Number of pages	7
ISBN (Print)	9783642412622
DOIs	https://doi.org/10.1007/978-3-642-41263-9_4
Publication status	Published - 2013
Externally published	Yes
Event	IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2013 - State College, United States Duration: Sept 9 2013 → Sept 12 2013

Publication series

Name	IFIP Advances in Information and Communication Technology
Volume	415
ISSN (Print)	1868-4238
ISSN (Electronic)	1868-422X

Conference

Conference	IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2013
Country/Territory	United States
City	State College
Period	9/9/13 → 9/12/13

All Science Journal Classification (ASJC) codes

Information Systems
Computer Networks and Communications
Information Systems and Management

Access to Document

10.1007/978-3-642-41263-9_4

Cite this

Akai, K., Aoki, K., & Nishino, N. (2013). Does an information service provider improve the market? In V. Prabhu, M. Taisch, & D. Kiritsis (Eds.), Advances in Production Management Systems: Sustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings (pp. 26-32). (IFIP Advances in Information and Communication Technology; Vol. 415). Springer New York LLC. https://doi.org/10.1007/978-3-642-41263-9_4

Does an information service provider improve the market? / Akai, Kenju; Aoki, Keiko; Nishino, Nariaki.

Advances in Production Management Systems: Sustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings. ed. / Vittal Prabhu; Marco Taisch; Dimitris Kiritsis. Springer New York LLC, 2013. p. 26-32 (IFIP Advances in Information and Communication Technology; Vol. 415).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Akai, K, Aoki, K & Nishino, N 2013, Does an information service provider improve the market? in V Prabhu, M Taisch & D Kiritsis (eds), Advances in Production Management Systems: Sustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings. IFIP Advances in Information and Communication Technology, vol. 415, Springer New York LLC, pp. 26-32, IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2013, State College, United States, 9/9/13. https://doi.org/10.1007/978-3-642-41263-9_4

Akai K, Aoki K, Nishino N. Does an information service provider improve the market? In Prabhu V, Taisch M, Kiritsis D, editors, Advances in Production Management Systems: Sustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings. Springer New York LLC. 2013. p. 26-32. (IFIP Advances in Information and Communication Technology). doi: 10.1007/978-3-642-41263-9_4

Akai, Kenju ; Aoki, Keiko ; Nishino, Nariaki. / Does an information service provider improve the market?. Advances in Production Management Systems: Sustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings. editor / Vittal Prabhu ; Marco Taisch ; Dimitris Kiritsis. Springer New York LLC, 2013. pp. 26-32 (IFIP Advances in Information and Communication Technology).

@inproceedings{b0b5524e0804477981a50b192b0a0f0e,

title = "Does an information service provider improve the market?",

abstract = "This study aims to theoretically analyze whether the information service provider improves the market efficiency. We construct a model where a good supplied by a producer has a risk to be harmful for a consumer because of an accident and it brings monetary losses to both consumers and producers. The accident risk is endogenously determined by the efforts of producers and consumers and the information of safety provided by the producers. The information service provider requires producers to provide information and certifies the credibility of information. In the equilibrium, if the entry cost for the information service provider is small, the optimal effort levels spent by the consumer and producer increase and the risk of accident decreases, which improves the market efficiency.",

author = "Kenju Akai and Keiko Aoki and Nariaki Nishino",

note = "Publisher Copyright: {\textcopyright} IFIP International Federation for Information Processing 2013.; IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2013 ; Conference date: 09-09-2013 Through 12-09-2013",

year = "2013",

doi = "10.1007/978-3-642-41263-9_4",

language = "English",

isbn = "9783642412622",

series = "IFIP Advances in Information and Communication Technology",

publisher = "Springer New York LLC",

pages = "26--32",