THE DYNAMICS OF SELLER REPUTATION: EVIDENCE FROM EBAY*
Luis Cabral () and
Journal of Industrial Economics, 2010, vol. 58, issue 1, 54-78
We construct a panel of eBay seller histories and examine the importance of eBay's reputation mechanism. We find that, when a seller first receives negative feedback, his weekly sales rate drops from a positive 5% to a negative 8%; subsequent negative feedback ratings arrive 25% more rapidly than the first one and don't have nearly as much impact as the first one. We also find that a seller is more likely to exit the lower his reputation is; and that, just before exiting, sellers receive more negative feedback than their lifetime average.
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Working Paper: The Dynamics of Seller Reputation: Evidence from eBay (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:58:y:2010:i:1:p:54-78
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