Liquidity Challenges in Illiquid Marketplaces
Illiquid Marketplaces is a common problem with various underlying factors. Information asymmetry, where one party has more knowledge than the other, makes it challenging to establish agreements and facilitate transactions. Complex market structures, with intricate trading rules or inadequate infrastructure, can hinder liquidity. Small marketplaces with fewer users naturally have less liquidity. Fragmented marketplaces, where sellers impose rigid terms, create barriers for potential buyers.
