We examine the effect of relationship-specific investment on the use of detailed contracts using data on transactions from a survey of Romanian firms. In those transactions, seller relationship-specific investment increases the amount of contractual detail, while buyer relationship-specific investment decreases it. We interpret these results using a hostages model applied to cash-flow and credi...

The past few years have witnessed the increasing ubiquity of user-generated content on seller reputation and product condition in Internet based used-good markets. Recent theoretical models of trading and sorting in used-good markets provide testable predictions to use to examine the presence of adverse selection and trade patterns in such dynamic markets. A key aspect of such empirical analyse...

This study explores how social influence approaches alter buyer–seller swift guanxi, trust in the seller and repurchase intention when considering of buyer dependence. Based on results an online survey three cities Taiwan, we empirically test research model using partial least squares analysis. We found that dependence exerts different but positive effects each approach usage only identificatio...

Flexible pricing plans are commonly observed in service industries. In this paper, we argue that the presence of flexible pricing plans can be attributed to consumers being boundedly rational – these consumers do not always select the best available option; rather, they select better options more often. In our model, the seller faces consumers who are heterogeneous in their degrees of intertemp...