Asymmetric Information, Credit Scarcity and the Development of E-Commerce.pdfVIP

Asymmetric Information, Credit Scarcity and the Development of E-Commerce Yongbing xul Y onghong Li2 I 2 Institute of Economics, Hebei University of Economics Institute of Accounting,Hebei University of Economics and Business, Shijiazhuang,050061, China and Business ,Shijiazhuang,050061, China xuyongbing@ liyonghongI966@126.com Abstract-According to the theory of George A Akerlof, the two trading parties will occur, thereby causing the market winner of Nobel Prize in economics in 2001, credit risks will to shrink or vanish. increase, resulting in shrinking or eliminating markets that Then why is it possible that asymmetric information bear great potentials when bargainers information in terms of arouse credit scarcity? This is because credit is a kind of two parties is in asymmetry. The mutual invisibility of the two capacity based on the trust of the information the provider parties in E-commerce transactions tends to aggravate the has on the recipients promise of repayment so that the latter asymmetry of information in some ways. In the case that the can obtain products, funds or services needless to pay for current credit in China is generally at a low level, such an immediately. This trust is placed on the basis of the premise asymmetry has become the biggest obstruction to the that the