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Asymmetric Information And Returns To Reputation In Online Auctions

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  • CHIA‐HUNG SUN

Abstract

In this paper, we explore whether seller reputation can help alleviate asymmetric information in Internet online auctions, using Taiwanese data. This study reveals that the influence of seller reputations on prices is statistically significant, indicating little cultural difference in online auction behaviors, especially the attitude towards seller reputation. Although negative scores do not affect auction prices in full sample regressions, the impact of negative scores becomes statistically significant in the separated sample (low‐reputation auctions). Bidders are cautious about sellers who have not built enough reputation.

Suggested Citation

  • Chia‐Hung Sun, 2008. "Asymmetric Information And Returns To Reputation In Online Auctions," Manchester School, University of Manchester, vol. 76(3), pages 336-348, June.
    • Handle: RePEc:bla:manchs:v:76:y:2008:i:3:p:336-348
    DOI: 10.1111/j.1467-9957.2008.01063.x
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Liu, Kang Ernest & Shiu, Ji-Liang & Sun, Chia-Hung, 2013. "How different are consumers in Internet auction markets? Evidence from Japan and Taiwan," Japan and the World Economy, Elsevier, vol. 28(C), pages 1-12.

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