Reputation and Prices on the e-Market: Evidence from a Major French Platform

Gregory R Jolivet, Bruno Jullien, Fabien Postel-Vinay

Research output: Contribution to journalArticle (Academic Journal)peer-review

17 Citations (Scopus)
384 Downloads (Pure)

Abstract

We use an exhaustive data set from one of France's largest e-commerce platforms, PriceMinister.com, to estimate a statistical causal effect of a seller's reputation (rating and size) on transaction prices. We go beyond the results currently available by tackling the issue of seller unobserved heterogeneity and the dynamics of reputation in price equations. We can also produce results for a large range of product categories (books, CDs, video games or DVDs), product conditions (used or new) and seller types (individual or professional sellers). Our results show large-scale empirical evidence of a significant, positive and strong effect of seller reputation on prices.
Original languageEnglish
Pages (from-to)59-75
Number of pages17
JournalInternational Journal of Industrial Organization
Volume45
Early online date22 Jan 2016
DOIs
Publication statusPublished - Mar 2016

Keywords

  • reputation
  • rating
  • consumer feedback
  • pricing
  • e-commerce

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