Several studies produce an identical result Klein and Leffler, [15] , Shapiro, [16] , Allen, [17]. Theoretical models have created a positive relationship between the item sale price and the reputation of the seller Klein and Leffler, ; Allen, ; Houser and Wooders, The evolution of electronic commerce in recent years has produced environment in which the relationship between price, sale and reputation can be verified empirically.
A large number of researches in the literature have conducted empirical studies of the eBays feedback system. They focus on the buyers reaction to sellers feedback profile. Most of these studies estimate the effect of a eBays reputation system on the item price and on sales using cross-sectional regressions.
While, in our empirical tests a panel data is used. Cabral and Hortacsu, assumed that results from panel data are highly significant, while their results from cross-section data, have less statistical significance. For the majority of these works, reputation mechanism seems to have an impact on auction sale price; however, there is significant dissimilarity among studies on the extent, magnitude and significance of the impact.
Here are, in our knowledge, the main related studies to our paper. An online field experiment conducted by Resnick and al. With similar item auctions sold through a new seller identity and regular identity, conclude that the willingness to pay for batches of vintage postcards were 8. In parallel, Dewan and Hsu conclude that a higher reputation score raises the wining auction price. Ba and Pavlou [19] , based on a lab experiment, splicing distinct seller feedback scores into real auction listings and questioning people to declare how much they are willing to pay more to distinct sellers.
They notice that consumers are willing to pay more to sellers who have high feedbacks. Then they deduce that sellers feedback profile has an economically and statistically significant impact on items price. Using a probit model, Depken and Gregorius [20] , estimated the impact of seller feedback on the Apple iPhone auction final price selling on eBay.
One of their findings is that receiving high feedback is positively correlated with winning price and receiving no feedback or negative ones lowers winning price. Other studies observe the effect of reputation on final prices in eBay auctions, their findings report that there is an impact of reputation on price, but this impact is relatively small. Among these papers, Lucking-Reiley et al. In the same line of thinking, Melnik and Alm used data from the online auction website eBay to estimate the effect of reputation on the price of the commodity.
Their empirical results find that a seller with a better reputation can anticipate that the buyer will pay a higher price for the product. Despite the fact that reputation indicates a positive, statistically significant effect on the willingness of consumers to pay for the product, its effect tends to be small. In other words, these authors estimate that the effect of a negative rating is significant but minor in magnitude, and the same stands for the effect of the positive feedback.
In Livingston paper, a theoretical model of bidder behavior guides an investigation study of how bidders react to sellers with high reputations. In order to test the predictions of the model, Livingston studied eBay auctions of Taylor Made Firesole irons. Results report that reputable sellers do receive significant returns than seller with no reputation. Moreover, products of sellers with better reputation are more likely to result in a sale and bidders are more willing to bid on this auction than on item of sellers who have no reputation.
Another conclusion of Livingston paper is that sellers are much more rewarded for the first few positive evaluations they receive, while the effect of additional positive evaluation is small. Ryan Mickey [21] analysis auctions of Apple iPod Touches on eBay to observe the effect of a seller reputation on price. The study shows that a sellers negative feedback affects the auction price. Indeed, negative rating tends to reduce the price that a seller obtains.
David Eaton has estimated the effect of sellers reputation on the probability of sale and the auction price. He gathered auctions of Paul Reed Smith electric guitars sold on eBay. He does not notice any strong statistically significant correlation between negative reputation and the probability of sale and on price of sold products.
Canals-Cerda [22] used a panel data technique to test the value of a seller feedback. Based on auctions from a group of self-representing artists who sell their own artwork on eBay, the author shows a statistically significant expected impact of a negative feedback on the behavior of traders.
Negative rating is associated with a significant decrease in auction price and a decrease in the probability of sale. Similar to Canals-Cerda paper, Cabral and Hortacsu based their study on a panel data to test the effect of eBays reputation feedback.
The authors create a theoretical model of eBays reputation system and test empirically its validity. They find that negative feedback has a significant effect on market outcomes. Additionally, seller is more likely to go out of the market the lower his reputation is; and that, just before abandoning, sellers get more negative evaluation than their existence average on eBay.
Created in September , eBay is regarded as one of the leading online auction site for the sale of items and services by hundreds of millions of people around the world and hosts millions of auctions every day. At the end of , eBay marketplace had million active registered users. In the second quarter of , the online platform reached million active users.
On eBay, any registered member has the possibility to list a product. When listing a product, the seller must describe the items and their policies such as shipping cost, acceptable methods of payment, the number of days that the auction will be active and return policies. Once a seller lists an auction on eBay, it can be publicly visible and only registered eBay users can bid on the good. There are two ways of selling goods on eBay: fixed price listings and auction style listings.
Fixed price listings are similar as in stock retail product; the buyer can make a purchase immediately. This kind of listing is easy to identify on eBay by clicking the Buy it Now button and pay the price listed next to the button. The second kind of listing has a Place Bid button.
Auctions listed are English auction, in which the highest bid becomes the closing price of the auction. Sometimes bidders will be outbid as soon as they enter the bid, however the bid they entered was higher than the current bid indicated on the product listing. When this occurs, eBay will immediately notify the bidders and bidders will have a chance to bid again by increasing their bids.
Such as Cabral and Hortacsu paper, our study will not describe in detail the price formation process on eBay. To have a certain vision of eBays position, it is crucial to understand the specific nature of eBays business model. As mentioned earlier, eBays allows sellers to list their items and buyers to find the items they want.
EBay is not a retailer; it acts as an intermediary between buyers and sellers. Therefore eBay does not hold or deliver items that are traded on its platform.
The online website gets its revenue from seller fees acquired upon successfully finished auctions. In order to allow reputation systems to control online transaction between buyers and sellers, eBay uses a rating system. After each transaction, buyers and sellers can rate each other by posting feedback. Buyers can post a positive, negative, or a neutral rating, as well as a comment.
Over time, registered members of eBay establish a feedback profile, or reputation, based on the ratings left by others. Ratings are combined to create feedback scores calculated according to the following system: positive rating rise feedback score by 1 point, negative rating reduce feedback score by 1 point and neutral rating leave feedback score the same. In addition to leaving a general rating of positive, neutral or negative for a seller, buyers can also leave detailed seller ratings.
Ratings can be more detailed in four areas: Item as described level of accuracy of the item described , communication whether seller responds to buyers questions in a professional manner , shipping time rate the seller on the time it took to dispatch the good and shipping charges reasonable costs charges.
As a summary, each potential buyer willing to buy from a specific seller can capture the following publicly available information:. Apr 21, , pm EDT.
Apr 21, , am EDT. Apr 17, , pm EDT. Mar 24, , am EDT. Mar 4, , pm EST. Edit Story. Aug 8, , pm EDT. Personal Finance. Use packing material specifically made for the purpose. Join our newsletter and get top eCommerce content straight to your inbox. The last thing you want to do is scrounge around your home for items that are collecting dust, and then passing them off as something else to your buyers.
Buy It Now is the simplest way to price an item on eBay; it lets your buyers make a purchase right away. With a fixed-price Buy It Now listing, a buyer knows the exact price they need to pay for your item, and can complete their purchase immediately. There is no bidding on fixed-price listings. This means your item will be relisted on eBay every month until it sells or until you end it.
When you add a Buy It Now option to auction-style listings, buyers can either purchase your item right away at the Buy It Now price or place a bid. When someone bids, the Buy It Now option usually disappears; however, in the case of reserve price listings, the Buy It Now option remains until the reserve price is met. In some categories, the Buy It Now option may continue to be available after the first bid for a limited time.
0コメント