Caveat Emptor : Differences in Online Reputation Mechanisms

  title={Caveat Emptor : Differences in Online Reputation Mechanisms},
  author={Paul Chwelos},
Using a unique dataset from a specialty online retailer, we are able to compare the effectiveness the of Amazon and eBay online reputation mechanisms. We develop a structural model of online order generation process, feedback generation process and price formation process. Results from our structural model suggest significant differences on how feedback affects total sales and how different types of order processing errors and consumer returns of ordered products influence consumers proclivity… CONTINUE READING