Topic:Knowing Less is Getting More in Bilateral Trade:An Experiment

Lecturer:Jiahua Zhu

Dr.Zhu is an Assistant Professor at the Business School of the University of Essex and will be joining the King's Business School at King's College London.She received a bachelor's degree in statistics from Qingdao University and a Master's degree in economics from Nanyang Technological University, Singapore. In October 2020, she received a doctorate degree in economics from Nanyang Technological University, Singapore. In December of the same year, she worked as a researcher in the joint Fintech Research Center of Nanyang Technological University and WeBank for one year. Her research interests include behavioral and experimental economics, experimental finance, As first or corresponding author in Management Science, Journal of Economic Behavior & Organization and Journal of Economic Dynamics and Control.

Abstract:

We investigate the benefits buyers might gain from increased product information in bilateral trade where the buyer S product valuation is uncertain. We evaluate how the buyer S information structure impacts the selling price and the market welfare. Roesler & Szentes (2017) demonstrated in their seminal paper that having less than perfect information about the product leads to lower selling prices, whereas full buyer information about the product results in higher prices. Our findings Confirm that less information about the product results in lower selling prices set by the seller, thereby reducing the seller' s surplus compared to a scenario with a fully informed buyer. Overall, our findings align with Roesler & Szentes (2017)' s predictions,suggesting that less knowledge about valuation can, paradoxically, benefit the buyer.

Time:3:00-5:00p.m,June 25th,2024

Venue:B609,YiFuXinxiBuilding,Central Campus