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Transaction Intermediaries from the Perspective of Two-sided Market: Evidence from the Phenomenon of Specialized Market
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TitleTransaction Intermediaries from the Perspective of Two-sided Market: Evidence from the Phenomenon of Specialized Market  
AuthorLu Lijun, Yu Hangdong, Lu Yao and Du Fangli  
OrganizationSchool of Economics and Management, Zhejiang Normal University; College of Textile, Iowa State University; School of Modern Logistics, Zhejiang Wanli University,,, 
Key WordsTwo-sided Market; Specialized Market; Externality; Intermediated Platform; Questionnaire 
AbstractSpecialized market can be seen as a kind of special two-sided market. This paper empirically investigates the relationship between matching of transaction, externality and number of agents in two-sided market, based on ten thousands of questionnaires of dealers, buyers and others in the China Commodity City in Yiwu, which is the biggest specialized market in world. The findings includes that increase in number of buyers will provide them with incentive to expand volume of purchasing and reduce the frequency, and is significantly positive with seller’s annual sales turnover and growth of sales, and the usage of electronic commerce will decrease the percentage of buyers entering the specialized market, and finally there exist positive externality cross groups and negative externality within groups in two-sided market. Meanwhile, the empirical results suggest that specialized market’s characteristics, such as quality of products, business environment, e-commerce, logistics service, are mostly positive with market’s externality, and brand building of specialized market and sellers can also be the strong force leading the buyers entering the market. 
Serial NumberWP251 
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