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The actual structure of eBay’s feedback mechanism and early evidence on the effect of recent changes

Author

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  • Klein, T.J.

    (Tilburg University, School of Economics and Management)

  • Lambertz, C.
  • Spagnalo, G.
  • Stahl, K.O.

Abstract

eBay’s feedback mechanism is considered crucial to establishing and maintaining trust on the world’s largest trading platform. Yet, there is confusion among users about its exact institutional details, which changed substantially in May 2007. Most importantly, buyers now have the possibility to leave additional, anonymous ratings on sellers on four different criteria. We provide a thorough description of the institutional details of eBay’s feedback mechanism, including those changes. Then, we provide first descriptive evidence on the impact of those changes on rating behaviour.

Suggested Citation

  • Klein, T.J. & Lambertz, C. & Spagnalo, G. & Stahl, K.O., 2009. "The actual structure of eBay’s feedback mechanism and early evidence on the effect of recent changes," Other publications TiSEM b4c7374f-b992-445a-b5c6-8, Tilburg University, School of Economics and Management.
  • Handle: RePEc:tiu:tiutis:b4c7374f-b992-445a-b5c6-851dca7edf45
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/1094589/KleinIJEB.pdf
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    References listed on IDEAS

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    5. Bajari, Patrick & Hortacsu, Ali, 2003. " The Winner's Curse, Reserve Prices, and Endogenous Entry: Empirical Insights from eBay Auctions," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 329-355, Summer.
    6. Ginger Zhe Jin & Andrew Kato, 2007. "Dividing Online and Offline: A Case Study," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 981-1004.
    7. Cynthia G. McDonald & V. Carlos Slawson, 2002. "Reputation in An Internet Auction Market," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 633-650, October.
    8. 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, June.
    9. Anderson, Steven & Friedman, Daniel & Milam, Garrett & Singh, Nirvikar, 2007. "Seller strategies on eBay: Does size matter?," MPRA Paper 4324, University Library of Munich, Germany.
    10. Luís Cabral & Ali Hortaçsu, 2010. "The Dynamics Of Seller Reputation: Evidence From Ebay," Journal of Industrial Economics, Wiley Blackwell, vol. 58(1), pages 54-78, March.
    11. Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796.
    12. Chrysanthos Dellarocas & Charles A. Wood, 2008. "The Sound of Silence in Online Feedback: Estimating Trading Risks in the Presence of Reporting Bias," Management Science, INFORMS, vol. 54(3), pages 460-476, March.
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    Cited by:

    1. Tobias J. Klein & Christian Lambertz & Konrad O. Stahl, 2016. "Market Transparency, Adverse Selection, and Moral Hazard," Journal of Political Economy, University of Chicago Press, vol. 124(6), pages 1677-1713.
    2. Matthias Wibral, 2015. "Identity changes and the efficiency of reputation systems," Experimental Economics, Springer;Economic Science Association, vol. 18(3), pages 408-431, September.
    3. Wibral, Matthias, 2014. "Identity changes and the efficiency of reputation systems," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 465, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    4. repec:eee:soceco:v:72:y:2018:i:c:p:17-27 is not listed on IDEAS
    5. repec:eee:aosoci:v:60:y:2017:i:c:p:79-95 is not listed on IDEAS
    6. Wibral, Matthias, 2014. "Identity Changes and the Efficiency of Reputation Systems," IZA Discussion Papers 8216, Institute of Labor Economics (IZA).

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