The Effect of Reputation on Selling Prices in Auctions
AbstractIn economic approaches it is often argued that reputation considerations influence the behavior of individuals or firms and that reputation influences the outcome of markets. Empirical evidence is rare though. In this contribution we argue that a positive reputation of sellers should have an effect on selling prices. Analyzing auctions of popular DVDs at eBay we, indeed, find support for this hypothesis. Secondary, we unmask the myth that it is promising for eBay sellers to let their auction end at the evening, when many potential buyers may be online.
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Bibliographic InfoPaper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 114.
Date of creation: May 2006
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Reputation; eBay feedback system; auction;
Other versions of this item:
- Christian Grund & Oliver Guertler, 2008. "The Effect of Reputation on Selling Prices in Auctions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(4), pages 345-356, August.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-03 (All new papers)
- NEP-CDM-2006-06-03 (Collective Decision-Making)
- NEP-CUL-2006-06-03 (Cultural Economics)
- NEP-IND-2006-06-03 (Industrial Organization)
- NEP-LAW-2006-06-03 (Law & Economics)
- NEP-MIC-2006-06-03 (Microeconomics)
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