Does an information service provider improve the market?

Kenju Akai, Keiko Aoki, Nariaki Nishino

Research output: Chapter in Book/Report/Conference proceedingConference 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 languageEnglish
Title of host publicationAdvances in Production Management Systems
Subtitle of host publicationSustainable Production and Service Supply Chains - IFIP WG 5.7 International Conference, APMS 2013, Proceedings
EditorsVittal Prabhu, Marco Taisch, Dimitris Kiritsis
PublisherSpringer New York LLC
Pages26-32
Number of pages7
ISBN (Print)9783642412622
DOIs
Publication statusPublished - 2013
Externally publishedYes
EventIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2013 - State College, United States
Duration: Sep 9 2013Sep 12 2013

Publication series

NameIFIP Advances in Information and Communication Technology
Volume415
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Conference

ConferenceIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2013
CountryUnited States
CityState College
Period9/9/139/12/13

All Science Journal Classification (ASJC) codes

  • Information Systems
  • Computer Networks and Communications
  • Information Systems and Management

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