Private Ordering on the Internet: The eBay Community of Traders
AbstracteBay provides an online auction venue for remote and anonymous individuals to realize gains from trade. As a venue it never sees the items sold, verifies the item listings, handles settlements, or represents either the buyer or seller. Despite the associated incentive problems over five million auctions are active on an average day. Trading is based on trust among members of its community, and trust is supported by a multilateral reputation mechanism based on user feedback. eBay supplements the reputation mechanism with rules and policies that mitigate incentive problems and support trust among users and trust between users and the company. Reputations and the rules and policies provide a private ordering of eBay's Internet community. This paper examines that private ordering in the context of market strategy and in the shadow of the public order.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Stanford University, Graduate School of Business in its series Research Papers with number 1709.
Date of creation: Dec 2001
Date of revision:
Contact details of provider:
Postal: Stanford University, Stanford, CA 94305-5015
Phone: (650) 723-2146
Web page: http://gsbapps.stanford.edu/researchpapers/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
- Banner, Stuart, 1998. "The Origin of the New York Stock Exchange, 1791-1860," The Journal of Legal Studies, University of Chicago Press, vol. 27(1), pages 113-40, January.
- Michi Kandori, 2010.
"Social Norms and Community Enforcement,"
Levine's Working Paper Archive
630, David K. Levine.
- Rong-Ruey Duh & Shyam Sunder & Karim Jamal, 2002.
"Control and Assurance in E-Commerce: Privacy, Integrity, and Security at eBay,"
Yale School of Management Working Papers
ysm316, Yale School of Management, revised 01 Jan 2003.
- Rong-Ruey Duh & Karim Jamal & Shyam NMI Sunder, 2001. "Control and Assurance in E-Commerce: Privacy, Integrity and Security at eBay," Yale School of Management Working Papers ysm170, Yale School of Management.
- Greif, Avner, 1994. "On the Political Foundations of the Late Medieval Commercial Revolution: Genoa During the Twelfth and Thirteenth Centuries," The Journal of Economic History, Cambridge University Press, vol. 54(02), pages 271-287, June.
- Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 857-882, December.
- Patrick Bajari & Ali Hortacsu, 2000. "Winner's Curse, Reserve Prices and Endogenous Entry: Empirical Insights from eBay Auctions," Econometric Society World Congress 2000 Contributed Papers 1927, Econometric Society.
- Daniel Houser & John Wooders, 2006. "Reputation in Auctions: Theory, and Evidence from eBay," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 353-369, 06.
- Clay, Karen, 1997. "Trade without Law: Private-Order Institutions in Mexican California," Journal of Law, Economics and Organization, Oxford University Press, vol. 13(1), pages 202-31, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.