Article

Reputation on the Internet

Luis Cabral

in The Oxford Handbook of the Digital Economy

Published in print August 2012 | ISBN: 9780195397840
Published online November 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780195397840.013.0013

Series: Oxford Handbooks

 Reputation on the Internet

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This article reports the recent, mostly empirical work on reputation on the Internet, with a particular focus on eBay's reputation system. It specifically outlines some of the main economics issues regarding online reputation. Most of the economics literature has focused on eBay despite the great variety of online reputation mechanisms. Buyers are willing to pay more for items sold by sellers with a good reputation, and this is reflected in actual sale prices and sales rates. It is also noted that reputation matters for buyers and for sellers. Regarding game theory's contribution, it is significant to understand the precise nature of agent reputation in online platforms. Online markets are important, in monetary terms and otherwise; and they are bound to become even more so in the future.

Keywords: online reputation; Internet; eBay; economics; buyers; sellers; online markets

Article.  5411 words. 

Subjects: Economics ; Economic Development and Growth

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