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Price Inefficiencies in Domain Name Markets: An Empirical Investigation

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Abstract:
I first outline a statistical test for the existence of price differences for comparable domain names among the marketplaces. The test results suggest the existence of price inefficiencies across exchanges. The existence of price inefficiency suggests that, on average, one side of a transaction is at a disadvantage. Moreover, price inefficiency significantly dampens a market’s transaction volume and liquidity. In conclusion, I outline some efficiency remedies for domain name markets.

For more information, go to:
http://www.domainmart.com/news/Pric...main_Name_Markets-Empirical_Investigation.pdf.

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