Research On Incentive Strategy Of C2C E-commerce Under Asymmetric Information

In recent years, e-commerce of China has been developed rapidly. C2C e-commerce facilitates the exchange of information between users for its convenience, efficiency, and reduce the space gap, etc., thus in the people’s work and life is playing an increasingly important role. However, compared with the traditional markets, the virtual nature and the open nature led to the existence of asymmetric information. Because information asymmetry throughout the whole process in the C2C e-commerce, it derived from moral hazard and adverse selection problems, which seriously affect the C2C e-commerce. Therefore, to investigate on the C2C e-commerce issues under asymmetric information and strengthen the construction of credibility to regulate user’s behavior is an important subject of e-business management.From the generation and classification of e-commerce started, this paper described in detail the current pattern of China’s C2C e-commerce transactions, processes, and development status. Followed by established the model of C2C e-commerce transactions under asymmetric information, calculate the conditions of optimal mix of strategies existing, so as to explore the design of incentive strategies.This major work done:(1) Overview of the C2C e-commerce, information asymmetry and other related theories;(2)Established the C2C e-commerce transactions model under asymmetric information, explored the conditions for the optimal strategy combination is existence, based on which to explore the C2C e-commerce intermediary incentive strategy;(3) The design of incentives contracts for buyers and sellers would enable buyers and sellers to get the most benefit when they carry out a transaction in good faith, and with the real C2C e-commerce transactions as an example to prove that the incentive contract is effective in practical applications;(4) Combined with signal theory, researched the signal transduction mechanism in C2C e-commerce market, to solve the credit market information asymmetry problem.Above work by this paper is to improve the C2C e-commerce transaction system, create a harmonious business environment, and thereby to promote better development of C2C e-commerce.