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Seller Reputation

Author

Listed:
  • Bar-Isaac, Heski
  • Tadelis, Steven

Abstract

Seller reputation is an important asset because buyers often choose sellers on the basis of their reputation. This is particularly true when the quality of the good or service transacted is hard to measure and the parties cannot perfectly contract on the outcome of the transaction. As a consequence, the seller will be mindful of building and maintaining a good reputation through the information that buyers have about the seller, including previous transactions and the reports of other buyers.

Suggested Citation

  • Bar-Isaac, Heski & Tadelis, Steven, 2008. "Seller Reputation," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(4), pages 273-351, August.
    • Handle: RePEc:now:fntmic:0700000027
    DOI: 10.1561/0700000027
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