Search and Information Frictions on Global E-Commerce Platforms: Evidence from AliExpress

Jie Bai, Maggie Chen, Jin Liu, Xiaosheng Mu and Yi Xu ()

No 28100, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study how search and information frictions shape market dynamics in global e-commerce. Observational data and self-collected quality measures from AliExpress establish the existence of search and information frictions. A randomized experiment that offers new exporters exogenous demand and information shocks demonstrates the potential role of sales accumulation in enhancing seller visibility and overcoming these demand frictions. However, we show theoretically and quantitatively that this demand-reinforcement mechanism is undermined by the large number of online exporters. Our structural model rationalizes the experimental findings and quantifies efficiency gains from reducing the number of inactive sellers.

JEL-codes: F14 L15 O12 (search for similar items in EconPapers)
Date: 2020-11
New Economics Papers: this item is included in nep-exp, nep-ict and nep-pay
Note: DEV ITI PR
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Search and Information Frictions on Global E-Commerce Platforms: Evidence from AliExpress (2021)
Working Paper: Search and Information Frictions on Global E-Commerce Platforms: Evidence from Aliexpress (2018)
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