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Based on the case of China’s timber market, the paper analyses the impact of information standardization on
the improvement of market efficiency. Information standardization can week the extent of asymmetric information, reduce
the information costs in trade, and hence enlarge the market scale. Our microeconomic model shows that, if there is
uncertainty in the market demand and market supply, the trader’s loss due to the unbalance of the market will be reduced
as the market scale increasing. Therefore, information standardization will benefit the traders from scale economy.