The value of assurance service: an example from the market for baseball cards

Purpose - The need for reliable information for decision makers is a fundamental principle underlying the demand for audit and assurance services. Yet, individuals and companies often do not understand the value that users place on independent third-party assurance. This paper aims to address this i...

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Bibliographic Details
Published in:Management research news 2009-10, Vol.32 (12), p.1147-1162
Main Authors: Sinason, David H., Webber, Sally A., Nikitkov, Alex
Format: Article
Language:English
Subjects:
Assurance services
Auctions
Baseball
Business models
Buyerseller relationships
Consumer behavior
Consumer risk
Consumers
Customer relations
Decision making
Electronic commerce
Financial statements
Information exchange
Information sharing
Internet
Internet shopping
Professional baseball
Quality assurance
Quality control
Risk
Sports
Statistical analysis
Studies
Third party
Trading cards
Warranties
Citations: Items that this one cites
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Summary:Purpose - The need for reliable information for decision makers is a fundamental principle underlying the demand for audit and assurance services. Yet, individuals and companies often do not understand the value that users place on independent third-party assurance. This paper aims to address this issue.Design methodology approach - This paper uses the market for baseball cards to provide an empirical analysis of the value users associate with third-party assurance services. Paired observations for baseball cards are identified on eBay; one with a third-party assurance regarding its quality and one with only the seller's statement.Findings - Comparative analysis indicates that bidders are willing to pay significantly more for the items when third-party assurance was provided.Originality value - These findings indicate that third-party assurance is valued by consumers, and where information asymmetry exists between buyer and seller, sellers should consider the use of third-party assurance to increase sale price.
ISSN:0140-9174
2040-8269
1758-6135
2040-8277
DOI:10.1108/01409170911006902