Download This PaperDesigning Online Marketplaces: Trust and Reputation Mechanisms
Forthcoming in NBER IPE
30 Pages Posted: 2 Sep 2016
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Designing Online Marketplaces: Trust and Reputation Mechanisms
Forthcoming in NBER IPE, Harvard Business School NOM Unit Working Paper No. 17-017
Number of pages: 30
Posted: 02 Sep 2016
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Designing Online Marketplaces: Trust and Reputation Mechanisms
Number of pages: 29
Posted: 12 Sep 2016
Last Revised: 18 Oct 2021
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17
Date Written: September 1, 2016
Abstract
Online marketplaces have proliferated over the past decade, creating new markets where none existed. By reducing transaction costs, online marketplaces facilitate transactions that otherwise would not have occurred and enable easier entry of small sellers. One central challenge faced by designers of online marketplaces is how to build enough trust to facilitate transactions between strangers. This paper provides an economist’s toolkit for designing online marketplaces, focusing on trust and reputation mechanisms.
Suggested Citation: Suggested Citation
Luca, Michael, Designing Online Marketplaces: Trust and Reputation Mechanisms (September 1, 2016). Forthcoming in NBER IPE, Harvard Business School NOM Unit Working Paper No. 17-017, Available at SSRN: https://ssrn.com/abstract=2833453
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