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Reputation in Auctions: Theory, and Evidence from eBay

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Author Info
Daniel Houser
John Wooders

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Abstract

"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." Copyright 2006, The Author(s) Journal Compilation (c) 2006 Blackwell Publishing.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economics & Management Strategy.

Volume (Year): 15 (2006)
Issue (Month): 2 (06)
Pages: 353-369
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Handle: RePEc:bla:jemstr:v:15:y:2006:i:2:p:353-369

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  1. Alvin E. Roth & Axel Ockenfels, . "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," Discussion Papers on Strategic Interaction 2002-32, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
    Other versions:
  2. Sun, Chia-Hung & Hsu, Ming-Fei, 2007. "The Determinants of Price in Online Auctions: More Evidence from Quantile Regression," Economics Working Papers wp07-18, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  3. Katharina Sailer, 2006. "Searching the eBay Marketplace," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  4. Claudia Keser, 2002. "Trust and Reputation Building in E-Commerce," CIRANO Working Papers 2002s-75, CIRANO. [Downloadable!]
  5. Axel Ockenfels, 2002. "New Institutional Structures on the Internet: The Economic Design of Online Auctions," Discussion Papers on Strategic Interaction 2002-08, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  6. Paul Resnick & Richard Zeckhauser & John Swanson & Kate Lockwood, 2006. "The value of reputation on eBay: A controlled experiment," Experimental Economics, Springer, vol. 9(2), pages 79-101, June. [Downloadable!] (restricted)
  7. Klein, Tobias & Lambertz, Christian & Spagnolo, Giancarlo & Stahl, Konrad O., 2006. "Last Minute Feedback," CEPR Discussion Papers 5693, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
    • Tobias J. Klein & Christian Lambertz & Giancarlo Spagnolo & Konrad O. Stahl, 2005. "Last Minute Feedback," Discussion Papers 62, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich, revised Mar 2006. [Downloadable!]
  8. Patrick Bajari & Ali Hortacsu, 2002. "Cyberspace Auctions and Pricing Issues: A Review of Empirical Findings," Working Papers 02005, Stanford University, Department of Economics. [Downloadable!]
  9. Christopher Schlägel & Birgitta Wolff, 2007. "Country-Specific Effects of Reputation and Information: A Comparison of Online Auctions in Germany, the UK, and the US," FEMM Working Papers 07027, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management. [Downloadable!]
  10. Young Han Lee & Ulrike Malmendier, 2007. "The Bidder's Curse," NBER Working Papers 13699, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Luis Cabral & Ali Hortacsu, 2004. "The Dynamics of Seller Reputation: Theory and Evidence from eBay," NBER Working Papers 10363, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Gary Bolton & Elena Katok & Axel Ockenfels, 2002. "Bridging the Trust Gap in Electronic Markets," Discussion Papers on Strategic Interaction 2002-26, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  13. Rama Katkar & David Lucking-Reiley, 2001. "Public Versus Secret Reserve Prices in eBay Auctions: Results from a Pokemon Field Experiment," NBER Working Papers 8183, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. David Masclet (CREM - CNRS) & Thierry Pénard (CREM – CNRS), 2006. "Pourquoi évaluer son partenaire lors d’une transaction à la eBay ? une approche expérimentale," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 200620, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS. [Downloadable!]
  15. Axel Ockenfels, 2002. "Reputationsmechanismen auf Internet-Marktplattformen - Theorie und Empirie -," Discussion Papers on Strategic Interaction 2002-46, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  16. Gary E. Bolton & Elena Katok & Axel Ockenfels, 2003. "How Effective are Electronic Reputation Mechanisms? An Experimental Investigation," Working Paper Series in Economics 3, University of Cologne, Department of Economics. [Downloadable!]
  17. Anderson, Steven & Friedman, Daniel & Milam, Garrett & Singh, Nirvikar, 2007. "Buy it now: A hybrid market institution," MPRA Paper 4322, University Library of Munich, Germany. [Downloadable!]
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