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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Tentative Research on Lemon Problems in the Internet Transaction

Tentative Research on Lemon Problems in the Internet Transaction
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Author(s): Li Qi (Xi’an Jiaotong University, China), Zhang Xianfeng (Xi’an Jiaotong University, China) and Zhang Qin (Xi’an Jiaotong University, China)
Copyright: 2002
Pages: 3
Source title: Issues & Trends of Information Technology Management in Contemporary Organizations
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-930708-39-6.ch167
ISBN13: 9781930708396
EISBN13: 9781466641358


While the scope of entities transacting through the Internet is enlarged, the objects they are dealing with are also enriched. Therefore, the information asymmetry does not disappear, but develops to be even worse under the new Internet environment. Traditional products and services’ “lemon” problems still exist, and many new traits of digital products and services lead to new features of “lemons” problems. In order to lessen these problems, the product or service producers ought to actively market themselves through new channels; the two parties concerned should search for the help of authorized institutions and information brokers/agents; incomplete contracts are also suitable choice for they can restrain sellers from selling inferior commodities.

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