Seller Reputation introduces a unifying framework that embeds a number of different approaches to seller reputation, incorporating both hidden information and hidden action. This framework is used to stress that the way in which consumers learn affects both behavior and outcomes. In particular, the extent to which information is generated and socially aggregated determines the efficiency of markets. After reviewing these theoretical building blocks, Seller Reputation examines several applications and empirical concerns. It highlights that the environment in which a transaction is embedded helps determine whether the transaction will occur and how parties will behave. Institutions, ranging from the design of online markets to norms in a community, can be understood as ensuring that concerns for reputation lead to more efficient outcomes. Similarly, the desire to affect consumer beliefs regarding the firm's incentives can help us understand strategic firm decisions that seem unrelated to the particular transactions they wish to promote. Seller Reputation concludes by considering slightly different models of reputation that lie beyond the scope of this framework, briefly reviewing the somewhat sparse empirical literature and suggesting future directions for research.
This will help us customize your experience to showcase the most relevant content to your age group
Please select from below
Login
Not registered?
Sign up
Already registered?
Success – Your message will goes here
We'd love to hear from you!
Thank you for visiting our website. Would you like to provide feedback on how we could improve your experience?
This site does not use any third party cookies with one exception — it uses cookies from Google to deliver its services and to analyze traffic.Learn More.