EconPapers    
Economics at your fingertips  
 

Fixing feedback revision rules in online markets

Gary Bolton (), Kevin Breuer (), Ben Greiner () and Axel Ockenfels

No 01/2020, Department for Strategy and Innovation Working Paper Series from WU Vienna University of Economics and Business

Abstract: Feedback withdrawal mechanisms in online markets aim to facilitate the resolution of conflicts during transactions. Yet, frequently used online feedback withdrawal rules are flawed and may backfire by inviting strategic transaction and feedback behavior. Our laboratory experiment shows how a small change in the design of feedback withdrawal rules, allowing unilateral rather than mutual withdrawal, can both reduce incentives for strategic gaming and improve coordination of expectations. This leads to less trading risk, more cooperation, and higher market efficiency.

Keywords: dispute resolution system; market design; reputation; trust (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-des and nep-exp
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://epub.wu.ac.at/7387/ original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wus055:7387

Access Statistics for this paper

More papers in Department for Strategy and Innovation Working Paper Series from WU Vienna University of Economics and Business Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by WU Library ().

 
Page updated 2020-02-09
Handle: RePEc:wiw:wus055:7387