Does a Seller's eCommerce Reputation Matter? Evidence from eBay Auctions

With internet commerce, a buyer cannot directly examine the product and so must rely upon the accuracy and reliability of the seller in deciding whether and how much to bid. In this setting, the seller's reputation can become an important factor in the bid. This paper examines the impact of the...

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Published in:The Journal of industrial economics 2002-09, Vol.50 (3), p.337-349
Main Authors: Melnik, Mikhail I, Alm, James
Format: Article
Language:English
Subjects:
Auctions
Average prices
Bid price
Credit cards
Economic models
Electronic commerce
Internet
Negative feedback
Positive feedback
Publishing industry
Reputations
Shipping
Shipping costs
Websites
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Alm, James
description With internet commerce, a buyer cannot directly examine the product and so must rely upon the accuracy and reliability of the seller in deciding whether and how much to bid. In this setting, the seller's reputation can become an important factor in the bid. This paper examines the impact of the seller's reputation on the willingness of buyers to bid on items sold via internet auctions, using a 1999 mint condition U.S. $5 gold coin whose average price was $32.73. The empirical results show that the seller's reputation has a positive, statistically significant, but small impact on the price.
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source International Bibliography of the Social Sciences (IBSS); Business Source Ultimate; EconLit with Full Text; Wiley-Blackwell Read & Publish Collection; PAIS Index; JSTOR
subjects Auctions
Average prices
Bid price
Credit cards
Economic models
Electronic commerce
Internet
Negative feedback
Positive feedback
Publishing industry
Reputations
Shipping
Shipping costs
Websites
title Does a Seller's eCommerce Reputation Matter? Evidence from eBay Auctions
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