The value of reputation on Ebay
Subtitle: a controlled experiment
By: Paul Resnick, Richard Zeckhauser, John Swanson, Kate Lockwood
Contributors: Zeckhauser, Richard; Swanson, John; Lockwood, Kate; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 03-205; Working paper (Harvard Business School. Division of Research) -- 03-205
Publisher: Division of Research, Harvard Business School
Published: 2003
Place of publication: Boston]
Language: eng
Number of pages: 38
Subjects: EBay (Firm)
Description: We conducted the first randomized controlled study of an Internet reputation mechanism. A high-reputation, established eBay dealer sold matched pairs of items - batches of vintage postcards - under his regular identity and new seller identities (also operated by him). As predicted, the established identity fared better. The difference in buyers' willingness-to-pay was 8.1% of the selling price. A subsidiary experiment followed the same format, but compared sales by relatively new sellers with and without negative feedback. Surprisingly, one or two negative feedbacks for our new sellers did not affect buyers' willingness-to-pay.
Notes: "Initial version: June 21, 2002. This version: May 29, 2003."

Includes bibliographical references.