Conference Agenda

Market digitalization has changed the role of consumers who can now be both sellers and buyers on platform-based secondary markets. This evolution reinforces the connections between primary and secondary markets as well as extends the choice context of consumers. The online platforms have expanded consumer options by increasing the supply of secondhand goods through their geographical reach, facilitating peer-to-peer exchange and the wide variety of goods on offer. Thus, the rise of secondhand markets highlights the importance of acknowledging the heterogeneity of the secondhand offers and the associated heterogeneity in consumer preferences. This paper provides empirical evidence of the three aspects of heterogeneity in the market: seller-related, buyer-related and product-related. We use a discrete choice experiment to study the choice between new and secondhand goods from the incumbent or an online independent platform in Spain. Expected quality is an important factor in consumer choices in this context. We observe a brand effect where consumers prefer to buy new and secondhand goods from the incumbent, as this may seem to be a more reliable choice. In addition, we find that consumers value uncertainty-reducing features such as an extended warranty and previous knowledge of the seller’s reputation.