【 The Digital Star Seminar Series No.12 】Search and Information Frictions on Global E-Commerce Platforms: Evidence from Ali-Express

Date: 3 March 2022 (Thu) 
Time: 9:00am - 10:30am (Hong Kong Time, UTC+8)
Platform: Tencent Meeting (ID 349-393-670)

Host: Prof. Miaojun Wang (School of Economics, Zhejiang University)

Presenter: Prof. Daniel Yi Xu (The Duke University)

Co-authors: Jie Bai (Harvard Kennedy School)
Maggie Chen (George Washington University)
Jin Liu (New York University)
Xiaosheng Mu (Princeton 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.

Intro to Prof. Daniel Yi Xu:

Daniel Yi Xu, professor at Duke University, is currently the co-editor of Review of Economics and Statistics, and the associate editor of Rand Journal of Economics and AEJ: Applied Economics. His main research areas include firm productivity, firm dynamics, and international trade. He is currently working on projects exploring innovation, productivity, exports, and industry dynamics, with a particular focus on emerging East Asian economies such as China and South Korea. His articles have been published in American Economic Review, Review of Economic Studies, Rand Journal of Economics, Review of Economic Dynamics, Management Science, etc. 

Organization：

- The Chinese University of Hong Kong-Zhejiang University Joint Research Center for Digital Economy

- China Digital Economy Research Center of School of Economics, Zhejiang University

- Zhejiang University Digital Economy Innovation Research Team

Intro to The Digital Star Seminar Series：

The Digital Star Seminar Series is co-hosted by the China Digital Economy Research Center of School of Economics, Zhejiang University, and the Chinese University of Hong Kong-Zhejiang University Joint Research Center for Digital Economy. This series of seminars will study the development of the digital economy and China's economic transformation based on the practice of China's digital transformation. We will invite domestic and overseas scholars to share and discuss the latest research on the digital economy and the Chinese economy. We hope that this academic platform can become a paradise for the study of the digital economy. More importantly, it can generate insights that significantly impact the digital economy and Chinese economy, which will help promote digital transformation and high-quality economic development in Chinese society.