The Impact of Rarity Awareness on User Trading Behavior : Evidence from NFT Marketplaces

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with host publication)peer-review

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Detail(s)

Original languageEnglish
Title of host publicationPACIS 2023 Proceedings
Publication statusPublished - 2023

Conference

Title2023 Pacific Asia Conference on Information Systems (PACIS 2023)
LocationShangri-La Hotel & Jiangxi University of Finance and Economics
PlaceChina
CityNanchang
Period8 - 12 July 2023

Abstract

With the rapid development of blockchain, Non-Fungible Token (NFT) received many discussions and challenges recently. Rarity Rank is one of its most important features and expresses multiple attributes of unique, special, and scarce to consumers. To explore the impact of rarity awareness, we utilize a quasi-experiment setting in the NFT marketplaces. We find that the PFP with Rarity Rank emergence in Rarible can significantly activate users’ perceived value and accelerate rarity awareness, which results in 11% lower transaction numbers and 8% lower transaction prices on the trading behavior. Furthermore, by the comparison of rarity-level collections, we find the low-rarity collections significantly impact users’ trading behavior which reflects in the reduction in transaction numbers and average prices. However, the high-rarity collections are not significant due to the perceived availability. In conclusion, our results not only extend label awareness in the NFT marketplace but provide many instructions for platform managers and sellers.

Research Area(s)

  • label awareness, rarity effect, NFT marketplace, perceived value, user trading behavior

Citation Format(s)

The Impact of Rarity Awareness on User Trading Behavior: Evidence from NFT Marketplaces. / Yuan, Lin; Gao, Chaoyue; LEUNG, Alvin Chung Man et al.
PACIS 2023 Proceedings. 2023. 160.

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with host publication)peer-review