Work

A Measure of Risk Caused by Information Asymmetry in e-Commerce

Year: 2006

Type: conference-paper

Abstract: The problem of enhancing success in e-Commerce requires reducing or sharing the risk of misinforming. The objectives of this paper is to raise and discuss the difficulties in quantifying the risk of misunderstanding caused by information asymmetry in a communication process; and to propose a mathematical model, developed to measure the risk of misinforming. Usage of warranty, as the most popular tool of sharing risk, is discussed in the light of risks of misinforming. A data set collected in an experiment, was used to illustrate the major ideas proposed as well as to stress on the fact that in particular circumstances this kind of risk is not understood by clients, which often leads to wrong decisions.

Source: Informing Science and IT Education Conference

DOI: 10.28945/3015

Authors: Dimitar Christozov, Stefanka Chukova, Plamen Mateev

Institutions: American University in Bulgaria, Victoria University of Wellington, Sofia University "St. Kliment Ohridski"

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W135393440

FWCI: 10.95

Cites: 10

Cited by: 16

Related to: 10