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Reputation in Auctions: Theory, and Evidence from e Bay
Author(s) -
Houser Daniel,
Wooders John
Publication year - 2006
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/j.1530-9134.2006.00103.x
Subject(s) - common value auction , reputation , microeconomics , set (abstract data type) , business , empirical evidence , economics , advertising , computer science , social science , sociology , programming language , philosophy , epistemology
Employing a procedure suggested by a simple theoretical model of auctions in which bidders and sellers have observable and heterogenous reputations for default, we examine the effect of reputation on price in a data set drawn from the online auction site eBay. Our main empirical result is that seller's, but not bidder's, reputation has an economically and statistically significant effect on price.