On 5th December 2016 (1-2pm) Timo Heinrich, Postdoctoral Researcher at the University of Duisburg-Essen, will give a presentation about “Buyer's choice in procurement -A study based on field and laboratory data" in Q4.245. Afterwards, Mr. Heinrich will be available for questions and discussions. His presentation is part of https://wiwi.uni-paderborn.de/dep1/me/research/discussing-research/seam/.
This study explores the effects of communication content and its interaction with reputation information in markets with moral hazard.
Our focus is on buyer-determined procurement auctions. This auction format allows buyers to select a bidder based on prices and all other information available and, thus, is particularly suitable to study buyer’s choice. Our analyses build on both, field and laboratory data.
We find that buyer's choice of a transaction partner is not only influenced by prices and reputation information, but also by bidders'
messages: Buyers are more likely to select bidders who make specific promises. Once specific promises are infeasible, buyers prefer bidders whose arguments reduce social distance. These observations do not depend on the availability of reputation information. We further observe that buyers profit from the availability of reputation information, but not from communication opportunities per se. Our results underline the importance of specific contents of communication and reputation tools in markets and suggest simple measures to improve the choice of transaction partners.