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− | == '''Lemon market theory''' == | + | == '''Information Asymmetry Theory''' == |
| ---- | | ---- |
| == Acronym == | | == Acronym == |
− | LMT
| + | |
| == Alternate name(s)== | | == Alternate name(s)== |
− | Lemon Theory | + | Lemon Theory, Information Asymmetry |
| == Main dependent construct(s)/factor(s)== | | == Main dependent construct(s)/factor(s)== |
− | Market deterioration in markets with information asymmetry
| + | Price premium, consumer choice, product returns |
| == Main independent construct(s)/factor(s) == | | == Main independent construct(s)/factor(s) == |
− | - Price of product<br> | + | - product type, product quality/fit uncertainty, seller uncertainty |
| + | |
| + | Price of product<br> |
| - Acclaimed product quality by selling party<br> | | - Acclaimed product quality by selling party<br> |
| - Expected/perceived product quality by buying party<br> | | - Expected/perceived product quality by buying party<br> |
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| == Seminal articles == | | == Seminal articles == |
− | | + | Akerlof, G. A. (1970). The market for" lemons": Quality uncertainty and the market mechanism. ''The Quarterly Journal of Economics'', 488-500. |
| == Originating area == | | == Originating area == |
| Economics | | Economics |
| == Level of analysis == | | == Level of analysis == |
− | Market, individual firms | + | Market, individual firms, products |
| == IS articles that use the theory == | | == IS articles that use the theory == |
| + | Pavlou, P. A., Liang, H., & Xue, Y. (2006). Understanding and mitigating uncertainty in online environments: a principal-agent perspective. ''MIS Quarterly'',''31''(1), 105-136. |
| + | |
| + | Dimoka, A., Hong, Y., & Pavlou, P. A. (2012). On product uncertainty in online markets: theory and evidence. ''MIS Quarterly'', ''36''(2), 395-426. [http://dl.acm.org/citation.cfm?id=2481644 Link] |
| + | |
| Backhouse, J., Hsu, W.Y., Tseng, J., Baptista, J. (2005) | | Backhouse, J., Hsu, W.Y., Tseng, J., Baptista, J. (2005) |
| ''"A Question of'' | | ''"A Question of'' |
| ''Trust - An economic perspective on Quality Standards in the Certification Services Market"''. | | ''Trust - An economic perspective on Quality Standards in the Certification Services Market"''. |
| Communications of the ACM. September, ISSN 0001-0782 | | Communications of the ACM. September, ISSN 0001-0782 |
| + | |
| + | Kim, Y., & Krishnan, R. (2013). On Product-level Uncertainty and Online Purchase Behaviour: An Empirical Analysis. ''Management Science''. [http://pubsonline.informs.org/doi/abs/10.1287/mnsc.2014.2063 Link] |
| + | |
| + | Ghose, A. (2009). Internet exchanges for used goods: An empirical analysis of trade patterns and adverse selection. ''Mis Quarterly'', 263-291. [http://www.jstor.org/stable/20650292?seq=1#page_scan_tab_contents Link] |
| + | |
| + | Hong, Y., & Pavlou, P. A. (2014). Product Fit Uncertainty in Online Markets: Nature, Effects, and Antecedents. ''Information Systems Research'', ''25''(2), 328-344. [http://pubsonline.informs.org/doi/abs/10.1287/isre.2014.0520 Link] |
| == Links from this theory to other theories == | | == Links from this theory to other theories == |
− | [[Agency theory]]<br> | + | Principal-agent theory, [[Agency theory]], Seller uncertainty, product quality uncertainty, product fit uncertainty, trust<br> |
| Adverse selection<br> | | Adverse selection<br> |
| Moral hazard | | Moral hazard |