Market Transparency, Adverse Selection, and Moral Hazard

We study the effects of improvements in market transparency on eBay on seller exit and continuing sellers’ behavior. An improvement in market transparency by reducing strategic bias in buyer ratings led to a significant increase in buyer valuation especially of sellers rated poorly prior to the change, but not to an increase in seller exit. When sellers had the choice between exiting—a reduction in adverse selection—and improved behavior—a reduction in moral hazard—, they preferred the latter because of lower cost. Increasing market transparency improves on market outcomes

Ownership and Control in a Competitive Industry

We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry profits are maximized within a symmetric two product monopoly, the investor attains this only in exceptional cases. Instead, she sometimes acquires a noncontrolling stake. Or she invests asymmetrically rather than pursuing a full takeover if she acquires a controlling one. Generally, she invests indirectly if she only wants to affect the product market outcome, and directly if acquiring shares is profitable per se.Differentiated products; separation of ownership and control; private benefits of control

Last Minute Feedback

Feedback mechanisms that allow partners to rate each other after a transaction are considered crucial for the success of anonymous internet trading platforms. We document an asymmetry in the feedback behavior on eBay, propose an explanation based on the micro structure of the feedback mechanism and the time when feedbacks are given, and support this explanation by findings from a large data set. Our analysis implies that the informational content of feedback records is likely to be low. The reason for this is that agents appear to leave feedbacks strategically. Negative feedbacks are given late, in the "last minute," or not given at all, most likely because of the fear of retaliative negative feedback. Conversely, positive feedbacks are given early in order to encourage reciprocation. Towards refining our insights into the observed pattern, we look separately at buyers and sellers, and relate the magnitude of the effects to the trading partners' experience

Adverse selection and moral hazard in anonymous markets

We study the effects of improvements in eBay’s rating mechanism on seller exit and continuing sellers’ behavior. Following a large sample of sellers over time, we exploit the fact that the rating mechanism was changed to reduce strategic bias in buyer rating. That improvement did not lead to increased exit of poorly rated sellers. Yet, buyer valuation of the staying sellers—especially the poorly rated ones—improved significantly. By our preferred interpretation, the latter effect results from increased seller effort; also, when sellers have the choice between exiting (a reduction in adverse selection) and improved behavior (a reduction in moral hazard), then they prefer the latter because of lower cost

Advances in Composite Manufacturing of Helicopter Parts

This study investigates and compares different methods for improving standard autoclave composite manufacturing in order to find suitable approaches to a more efficient composite production. The goal is not only a reduction in manufacturing times and costs but also quality enhancement. Improved part quality while decreasing costs enables a manufacturer of composite parts to expand its market share, especially in the helicopter market, which has been constantly shrinking over the last two years. Various approaches such as improved tooling technology, the use of automated systems for lamination as well as outsourcing are examined to provide an overview of possible advancements in the area of autoclave manufacturing. The results firstly suggest that a thermal tooling optimization provides significant improvements; secondly, the use of automated systems and outsourcing will improve efficiency only under the condition that the relationship of potential cost reduction and the required investment is beneficial

Pressure-tuning of α\alpha-RuCl3_3 towards the ideal Kitaev-limit

We report the discovery of an intriguing pressure-driven phase transformation in the layered Kitaev-material $\alpha$-RuCl$_3$. By analyzing both the Bragg scattering as well as the diffuse scattering of high-quality single crystals, we reveal a collective reorganization of the layer stacking throughout the crystal. Importantly, this transformation also effects the structure of the RuCl$_3$ honeycomb layers, which acquire a high trigonal symmetry with a single Ru--Ru distance of 3.41\r{A} and a single Ru--Cl--Ru bond angle of 92.8{\deg}. Hydrostatic pressure therefore allows to tune the structure of $\alpha$-RuCl$_3$ much closer to the ideal Kitaev-limit. The high-symmetry phase can also be stabilized by biaxial stress, which can explain conflicting results reported earlier and, more importantly, makes the high-symmetry phase accessible to a variety of experiments