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Inflated Reputations Uncertainty, Leniency & Moral Wiggle Room in Trader Feedback Systems

Listed author(s):
  • Kusterer, David
  • Bolton, Gary
  • Mans, Johannes

Reputation systems associated with Internet markets are known to be subject to strategic manipulation. The experiment we present suggests that this manipulation can extend to factors that have heretofore been overlooked: the leniency and moral wiggle room that arise from uncertainty about the source of transaction problems. Uncertainty about seller culpability leads to behaviors that reduce the informativeness of the feedback system, thereby diminishing the incentives for honest seller behavior. Under uncertainty, buyers pay about the same prices but get significantly less.

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File URL: https://www.econstor.eu/bitstream/10419/145794/1/VfS_2016_pid_6829.pdf
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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2016 (Augsburg): Demographic Change with number 145794.

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Date of creation: 2016
Handle: RePEc:zbw:vfsc16:145794
Contact details of provider: Web page: http://www.socialpolitik.org/
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