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- W160414651 abstract "Using a unique dataset from a specialty online retailer, we compare the reputation mechanisms of Amazon and eBay. We develop a theoretical model of reputation mechanisms based on the feedback processes at Amazon and eBay, and then validate this model by comparing its predictions to the findings of existing research. We construct and estimate a dynamic simultaneous equations model of the sales demand, feedback generation, and price formation processes. Significant differences exist across the Amazon and eBay mechanisms in that: (a) the propensity to leave feedback is higher on eBay than on Amazon, (b) negative feedback is much less frequently observed on eBay than on Amazon, (c) feedback on Amazon has a strong demand-inducing impact, raising prices and total sales, whereas (d) feedback on eBay has no effect on demand. Overall, these results suggest that the Amazon reputation mechanism provides more useful information to buyers than does the eBay mechanism, and that these differences are largely due to the directionality of these mechanisms: eBay’s bilateral system, which allows buyers to rate sellers and sellers to rate buyers gives way to strategic considerations – reciprocity and retaliation – that do not plague Amazon’s unilateral system in which only buyers rate sellers." @default.
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- W160414651 date "2007-01-01" @default.
- W160414651 modified "2023-09-27" @default.
- W160414651 title "Differences in “Truthiness” across Online Reputation Mechanisms" @default.
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