Does a Seller's Ecommerce Reputation Matter? Evidence from Ebay Auctions

13 Pages Posted: 2 Jul 2003

See all articles by Mikhail Ion Melnik

Mikhail Ion Melnik

Niagara University - Commerce Department

James Alm

Tulane University

Abstract

With internet commerce, a buyer cannot directly examine the product and so must rely upon the accuracy and reliability of the seller in deciding whether and how much to bid. In this setting, the seller's reputation can become an important factor in the bid. This paper examines the impact of the seller's reputation on the willingness of buyers to bid on items sold via internet auctions, using a 1999 mint condition U.S. $5 gold coin whose average price was $32.73. The empirical results show that the seller's reputation has a positive, statistically significant, but small impact on the price.

Suggested Citation

Melnik, Mikhail Ion and Alm, James, Does a Seller's Ecommerce Reputation Matter? Evidence from Ebay Auctions. Journal of Industrial Economics, Vol. 50, pp. 337-349, 2002. Available at SSRN: https://ssrn.com/abstract=330410

Mikhail Ion Melnik (Contact Author)

Niagara University - Commerce Department ( email )

P.O. Box 2201
Niagara University, NY 14109
United States

James Alm

Tulane University ( email )

United States
5048628344 (Phone)

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