- Title
- Search and Information Frictions on Global E-Commerce Platforms: Evidence from AliExpress
- Author(s)
- Jie Bai Jie Bai (Harvard Kennedy School)
- Maggie X. Chen Maggie Chen ( George Washington University)
- Jin Liu Jin Liu (New York University)
- Xiaosheng Mu Xiaosheng Mu (Princeton University)
- Daniel Yi Xu Daniel Xu (Duke University)
- 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.
- Creation Date
- 2021-09
- Section URL ID
- Paper Number
- 2021-11
- URL
- https://uploads.strikinglycdn.com/files/acf70798-4ca0-4dc0-9255-c2104620fb3f/AliExpress.pdf
- File Function
- Jel
- F14, L11, O12
- Keyword(s)
- global e-commerce, exporter dynamics, product quality, information frictions, search frictions
- Suppress
- false
- Series
- 13