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Modeling and estimating returns to seller reputation with unobserved heterogeneity in online auctions

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  • Shiu, Ji-Liang
  • Sun, Chia-Hung D.

Abstract

This study provides an alternative approach that takes account of the unobserved effects of each seller under a sample selection framework. Empirical findings, after converting the Yahoo! Japan Auctions dataset into unbalanced panel data, show that seller reputation remains an important factor for buyers when bidding on items, while the sample data confirm the unobserved heterogeneity of sellers and the sample selection problem.

Suggested Citation

  • Shiu, Ji-Liang & Sun, Chia-Hung D., 2014. "Modeling and estimating returns to seller reputation with unobserved heterogeneity in online auctions," Economic Modelling, Elsevier, vol. 40(C), pages 59-67.
  • Handle: RePEc:eee:ecmode:v:40:y:2014:i:c:p:59-67
    DOI: 10.1016/j.econmod.2014.03.014
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    References listed on IDEAS

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    Cited by:

    1. Chen, Pu & Chen, Yijuan & Hu, Xiangting & Li, Sanxi, 2015. "Can online markets attract high-quality products?," Economic Modelling, Elsevier, vol. 51(C), pages 65-71.

    More about this item

    Keywords

    Internet auction; Unobserved heterogeneity; Unbalanced panel data; Sample selection model; Japan;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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