Reputation in auctions: Theory, and evidence from eBay

Blackwell Publishing
Publication Type:
Journal Article
Journal Of Economics & Management Strategy, 2006, 15 (2), pp. 353 - 369
Issue Date:
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Employing a procedure suggested by a simple theoretical model of auctions in which bidders and sellers have observable and heterogenous reputations for default, we examine the effect of reputation on price in a data set drawn from the online auction site eBay. Our main empirical result is that seller's, but not bidder's, reputation has an economically and statistically significant effect on price.
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