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Anonymity and Self-Expression in Online Rating Systems - An Experimental Analysis

Author

Listed:
  • Britta Hoyer

    (Paderborn University)

  • Dirk van Straaten

    (Paderborn University)

Abstract

Customer reviews are a fundamental part of online markets to establish trust between customers and sellers. Sharing experiences about products and services, however, is accompanied with the (sometimes involuntary) sharing of personal information. This is in conflict with growing concerns of data security calling for more privacy in online settings. Anonymous reputation systems could be one instrument to ensure more privacy in such markets. However, the impact of anonymity on the propensity to leave reviews is unclear. In this experimental study we therefore analyze whether the degree of anonymity of customers affects their propensity to leave reviews in an online market. We find that the amount of ratings drops significantly when subjects are anonymous pointing to self-expression as a driver of customer reviews. Moreover, we find that altruistic subjects are not affected by the introduction of anonymity and, hence, provide significantly more reviews compared to non-altruists under anonymity. When we remove the veil of anonymity, this difference between altruists and non-altruists disappears and, overall, market outcomes increase.

Suggested Citation

  • Britta Hoyer & Dirk van Straaten, 2021. "Anonymity and Self-Expression in Online Rating Systems - An Experimental Analysis," Working Papers Dissertations 70, Paderborn University, Faculty of Business Administration and Economics.
    • Handle: RePEc:pdn:dispap:70
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    References listed on IDEAS

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    Cited by:

    1. Dirk van Straaten, 2021. "Incentive Schemes in Customer Rating Systems - Comparing the Effects of Unconditional and Conditional Rebates on Intrinsic Motivation," Working Papers Dissertations 71, Paderborn University, Faculty of Business Administration and Economics.
    2. Dirk van Straaten & Vitalik Melnikov & Eyke Hüllermeier & Behnud Mir Djawadi & René Fahr, 2021. "Accounting for Heuristics in Reputation Systems: An Interdisciplinary Approach on Aggregation Processes," Working Papers Dissertations 72, Paderborn University, Faculty of Business Administration and Economics.

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    More about this item

    Keywords

    Customer Rating; Altruism; Public Good; Anonymity; Reputation;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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