The Value of Reputation on Ebay: a Controlled Experiment
نویسندگان
چکیده
We conducted the first randomized controlled field experiment of an Internet reputation mechanism. A high-reputation, established eBay dealer sold matched pairs of lots -batches of vintage postcards -under his regular identity and under new seller identities (also operated by him). As predicted, the established identity fared better. The difference in buyers’ willingness-to-pay was 8.1% of the selling price. A subsidiary experiment followed the same format, but compared sales by relatively new sellers with and without negative feedback. Surprisingly, one or two negative feedbacks for our new sellers did not affect buyers’ willingness-to-pay.
منابع مشابه
The Limits of Reputation in Platform Markets: An Empirical Analysis and Field Experiment∗
Reputation mechanisms used by platform markets suffer from two problems. First, buyers may draw conclusions about the quality of the platform from single transactions, causing a reputational externality. Second, reputation measures may be coarse or biased, preventing buyers from making proper inferences. We document these problems using eBay data and claim that platforms can benefit from identi...
متن کاملModeling eBay-like reputation systems: Analysis, characterization and insurance mechanism design
E-commerce systems like eBay are becoming increasingly popular. Having an effective reputation system is critical because it can assist buyers to evaluate the trustworthiness of sellers, and improve the revenue for reputable sellers and E-commerce operators. We formulate a stochastic model to analyze an eBay-like reputation system and propose four measures to quantify its effectiveness: (1) new...
متن کاملExperimental games for the design of reputation management systems
Trust between people engaging in economic transactions affects the economic growth of their community. Reputation management systems, such as the Feedback Forum of eBay Inc., can increase the trust level of the participants. We show in this paper that experimental economics can be used in a controlled laboratory environment to measure trust and trust enhancement. Specifically, we present an exp...
متن کاملIn-depth Analysis of the Seller Reputation and Price Premium Relationship: a Comparison between Ebay Us and Taobao China
Seller reputation is recognized as an essential determinant in online C2C marketplaces, but its influence on price premium remains unknown. The majority of existing studies indicate that seller reputation is positively correlated with sales price (price premium) on eBay US, but not on Taobao China. Conversely, the strong correlation between seller reputation and sales volume found on Taobao (vo...
متن کاملBalances of Power on eBay: Peers or Unequals?
Electronic reputation systems substitute for trust between individuals who engage in online transactions without knowing one another. The mechanisms through which online reputations are managed are likely to affect the evolution and acceptance of peer to peer systems. In this paper, we examine eBay’s reputation mechanisms to investigate how “balances of power” can emerge inside reputation syste...
متن کامل