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On the Internet you can be anyone: An experiment on strategic avatar choice in online marketplaces

Author

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  • Diya Abraham

    (Wirtschaftuniversität Wien, Institute for Markets and Strategy / Masaryk University)

  • Ben Greiner

    (Wirtschaftuniversität Wien, Institute for Markets and Strategy / University of New South Wales, School of Economics)

  • Marianne Stephanides

    (Wirtschaftuniversität Wien, Institute for Markets and Strategy)

Abstract

In order to decrease social distance and increase trust on their platforms, many online marketplaces allow traders to be represented by profile pictures or avatars. In a laboratory experiment, we investigate whether the presence of seller avatars affects trading behavior in a market. We contrast markets without avatars with markets where avatars truthfully represent traders and markets where avatars can be freely changed at any time and may thus be chosen strategically. At the aggregate level, we find that the presence of truthful avatars increases the trustwothiness of sellers, but that this effect is undone when avatars can be chosen strategically. We do not detect aggregate effects on buyers´ trusting choices. Female avatars are more trusted, and correspondignly in the treatment with free avatar choice men are more likely to represent themselves with a female avatar than vice versa.

Suggested Citation

  • Diya Abraham & Ben Greiner & Marianne Stephanides, 2021. "On the Internet you can be anyone: An experiment on strategic avatar choice in online marketplaces," MUNI ECON Working Papers 2021-02, Masaryk University, revised Feb 2023.
    • Handle: RePEc:mub:wpaper:2021-02
    DOI: 10.5817/WP_MUNI_ECON_2021-02
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    2. Corina Pelau & Valentina Ghinea & Bogdan Hrib, 2023. "Social Image in the Online Environment Sustainable Motive for Book Sales During the Pandemic," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(S17), pages 1081-1081, November.
    3. Tom Lane, 2023. "The strategic use of social identity," Discussion Papers 2023-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

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    More about this item

    Keywords

    online marketplaces; market design; trust and trustworthiness; avatars; strategic behavior;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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