Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The value of assurance service: an example from the market for baseball cards

The value of assurance service: an example from the market for baseball cards Purpose – The need for reliable information for decision makers is a fundamental principle underlying the demand for audit and assurance services. Yet, individuals and companies often do not understand the value that users place on independent third‐party assurance. This paper aims to address this issue. Design/methodology/approach – This paper uses the market for baseball cards to provide an empirical analysis of the value users associate with third‐party assurance services. Paired observations for baseball cards are identified on eBay; one with a third‐party assurance regarding its quality and one with only the seller's statement. Findings – Comparative analysis indicates that bidders are willing to pay significantly more for the items when third‐party assurance was provided. Originality/value – These findings indicate that third‐party assurance is valued by consumers, and where information asymmetry exists between buyer and seller, sellers should consider the use of third‐party assurance to increase sale price. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Research News Emerald Publishing

The value of assurance service: an example from the market for baseball cards

Loading next page...
 
/lp/emerald-publishing/the-value-of-assurance-service-an-example-from-the-market-for-baseball-cmS9daluit

References (26)

Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
0140-9174
DOI
10.1108/01409170911006902
Publisher site
See Article on Publisher Site

Abstract

Purpose – The need for reliable information for decision makers is a fundamental principle underlying the demand for audit and assurance services. Yet, individuals and companies often do not understand the value that users place on independent third‐party assurance. This paper aims to address this issue. Design/methodology/approach – This paper uses the market for baseball cards to provide an empirical analysis of the value users associate with third‐party assurance services. Paired observations for baseball cards are identified on eBay; one with a third‐party assurance regarding its quality and one with only the seller's statement. Findings – Comparative analysis indicates that bidders are willing to pay significantly more for the items when third‐party assurance was provided. Originality/value – These findings indicate that third‐party assurance is valued by consumers, and where information asymmetry exists between buyer and seller, sellers should consider the use of third‐party assurance to increase sale price.

Journal

Management Research NewsEmerald Publishing

Published: Oct 30, 2009

Keywords: Quality assurance; Sports; Buyer‐seller relationships; Consumer risk; Information exchange; Internet shopping

There are no references for this article.