The Impact of Socioeconomic and Cultural Differences on Online Trade

Daniel W. Elfenbein (), Raymond Fisman and Brian McManus ()
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Daniel W. Elfenbein: Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130
Brian McManus: Department of Economics CB 3305, University of North Carolina, Chapel Hill, North Carolina 27599

Management Science, 2023, vol. 69, issue 10, 6181-6201

Abstract: We use eBay data to investigate how within-U.S. trade is influenced by differences in socioeconomic characteristics. States’ similarity in cultural characteristics (ethnicity, religious affiliations, and political behavior) predicts online trade; cultural similarity similarly predicts trade within product categories. The culture-trade relationship is stronger for transactions with sellers who lack extensive reputations or certification, suggesting that consumers infer seller trustworthiness from cultural similarity. There is no correlation between cultural similarity and buyer satisfaction, suggesting that perceived differences in trustworthiness are not validated in actual transactions.

Keywords: e-commerce; culture; trust; trade frictions (search for similar items in EconPapers)
Date: 2023
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http://dx.doi.org/10.1287/mnsc.2023.4681 (application/pdf)

Related works:
Working Paper: The Impact of Socioeconomic and Cultural Differences on Online Trade (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:69:y:2023:i:10:p:6181-6201

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