Purchase - $8 CEPR Subscribers Download
Add Paper to My Library
Permalink
Using these links will ensure access to this page indefinitely
Copy URL

When and Why Do Buyers Rate in Online Markets?

CEPR Discussion Paper No. DP17006

61 Pages Posted: 29 Mar 2022

See all articles by Xiang Hui

Xiang Hui

Washington University in St. Louis

Tobias J. Klein

Tilburg University - Department of Econometrics & Operations Research; Tilburg University - Center for Economic Research (CentER); IZA Institute of Labor Economics; Netspar; Tilburg Law and Economics Center (TILEC)

Konrad O. Stahl

University of Mannheim - Department of Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: February 2022

Abstract

Online ratings play an important role in many markets. We study the often disputed information content of these ratings, by proposing a reduced-form Bayesian model of the typical buyer's rating decision. Our empirical evidence based on eBay raw data is in line with even intricate predictions from it. We thus have good reasons to calibrate the model to moments of the data. Our simulations suggest that the rating record reveals the seller's type after about 100 transactions, or 65-70 ratings.

Keywords: Online markets, Rating, reputation

JEL Classification: D83, L12, L13, L81

Suggested Citation

Hui, Xiang and Klein, Tobias J. and Stahl, Konrad O., When and Why Do Buyers Rate in Online Markets? (February 2022). CEPR Discussion Paper No. DP17006, Available at SSRN: https://ssrn.com/abstract=4069641

Xiang Hui (Contact Author)

Washington University in St. Louis ( email )

Tobias J. Klein

Tilburg University - Department of Econometrics & Operations Research ( email )

Tilburg, 5000 LE
Netherlands

HOME PAGE: http://center.uvt.nl/staff/klein/index.html

Tilburg University - Center for Economic Research (CentER)

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Konrad O. Stahl

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181 1875 (Phone)
+49 621 181 1874 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Purchase - $8 CEPR Subscribers Download

Do you have a job opening that you would like to promote on SSRN?

Place Job Opening

Paper statistics

Downloads
8
Abstract Views
320
1 Citations
37 References
PlumX Metrics

Related eJournals