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Country-of-Origin Premiums for Retailers in International Trades: Evidence from eBay's International Markets

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  • Hu, Ye
  • Wang, Xin

Abstract

Using real-world transaction prices in the Internet auction Web site eBay's U.S., U.K., and global markets, the authors study the price dispersion of homogeneous products related to the sellers’ country-of-origin. For both tangible and intangible products and services, sellers from the United States enjoy a price premium. This premium appears to stem from country-of-origin equity instead of trading risk or product quality. The findings of this research suggest potential profitable opportunities in international trade by employing the retailer's country-of-origin as an arbitrage tool.

Suggested Citation

  • Hu, Ye & Wang, Xin, 2010. "Country-of-Origin Premiums for Retailers in International Trades: Evidence from eBay's International Markets," Journal of Retailing, Elsevier, vol. 86(2), pages 200-207.
    • Handle: RePEc:eee:jouret:v:86:y:2010:i:2:p:200-207
    DOI: 10.1016/j.jretai.2010.02.002
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    1. Onur, Ilke & Bruwer, Johan & Lockshin, Larry, 2020. "Reducing information asymmetry in the auctioning of non-perishable experience goods: The case of online wine auctions," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    2. Keith Walley & Paul Custance & Tan Feng & Xu Yang & Li Cheng & Sandra Turner, 2014. "The Influence of Country of Origin on Chinese Food Consumers," Transnational Marketing Journal, Oxbridge Publishing House, UK, vol. 2(2), pages 78-98, October.
    3. Pao-Li Chang & Tomoki Fujii & Wei Jin, 2022. "Good Names Beget Favors: The Impact of Country Image on Trade Flows and Welfare," Management Science, INFORMS, vol. 68(10), pages 7555-7596, October.
    4. Wu, Yinglu & Wu, Jianan, 2016. "The Impact of User Review Volume on Consumers' Willingness-to-Pay: A Consumer Uncertainty Perspective," Journal of Interactive Marketing, Elsevier, vol. 33(C), pages 43-56.
    5. Roy Mill, 2011. "Hiring and Learning in Online Global Labor Markets," Working Papers 11-17, NET Institute, revised Oct 2011.
    6. Luis-Alberto, Casado-Aranda & Angelika, Dimoka & Juan, Sánchez-Fernández, 2021. "Looking at the brain: Neural effects of “made in†labeling on product value and choice," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    7. Dass, Mayukh & Reddy, Srinivas K. & Iacobucci, Dawn, 2014. "A Network Bidder Behavior Model in Online Auctions: A Case of Fine Art Auctions," Journal of Retailing, Elsevier, vol. 90(4), pages 445-462.
    8. Saeed Samiee & Brian R. Chabowski, 2021. "Knowledge structure in product- and brand origin–related research," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 947-968, September.
    9. Cong Feng & Scott Fay & K. Sivakumar, 2016. "Overbidding in electronic auctions: factors influencing the propensity to overbid and the magnitude of overbidding," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 241-260, March.
    10. Assaf, A. George & Josiassen, Alexander & Ratchford, Brian T. & Barros, Carlos Pestana, 2012. "Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model," Journal of Retailing, Elsevier, vol. 88(2), pages 191-205.
    11. Moon, Sangkil & Song, Reo, 2015. "The Roles of Cultural Elements in International Retailing of Cultural Products: An Application to the Motion Picture Industry," Journal of Retailing, Elsevier, vol. 91(1), pages 154-170.
    12. Xia Li, 2022. "The impact of place-of-origin on price premium for agricultural products: empirical evidence from Taobao.com," Electronic Commerce Research, Springer, vol. 22(2), pages 561-584, June.

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