Fraud, Economic versus Social-Psychological Losses, and Sustainable E-Auction

Xiaobing Zhang, Fu-Sheng Tsai, Chih-Chen Lin, Ya-Fang Cheng and Kun-Hwa Lu
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Xiaobing Zhang: Business School, Huaiyin Institute of Technology, Huaian 223001, China
Fu-Sheng Tsai: Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan
Chih-Chen Lin: Postgraduate Program in Management, I-Shou University, Kaohsiung 840, Taiwan
Ya-Fang Cheng: Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan
Kun-Hwa Lu: Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan

Sustainability, 2018, vol. 10, issue 9, 1-12

Abstract: As compared to the economic losses, social and psychological losses are of equal importance in discussing the losses when encountering fraud. Taking advantage of a perspective paper form (i.e., free writing style with a mix of description, analysis, and comments) with in-depth discussions and well-developed propositions, we combine considerations from the knowledge gap, platform quality, and risk management to discuss the comparative seriousness of different fraud-caused losses. The conceptual model mainly articulates on a series of relationships among different degrees of knowledge gap, platform quality, and risk management in predicting the various combinative losses in the economic, social, and psychological aspects. Propositions follow. First, when the knowledge gap is higher, the economic losses of being cheated on the internet will be higher, while lower in social and psychological losses. Second, when perceived platform quality is higher, the economic losses of being cheated on the internet will be lower, while higher in social and psychological losses. Third, when platform risk management is better, all aspects of being cheated on the internet will be lower. Based on the assumption of network externality, we also argue that the multiple dimensions of fraud-caused losses may damage e-auction sustainability. Theoretical and practical implications will be discussed.

Keywords: economic vs. social-psychological losses; internet fraud; e-auction; knowledge gap; platform quality; risk management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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