Remain Silent and Ye Shall Suffer : Seller Exploitation of Reticent Buyers in an Experimental Reputation System

@inproceedings{Gazzale2008RemainSA,
  title={Remain Silent and Ye Shall Suffer : Seller Exploitation of Reticent Buyers in an Experimental Reputation System},
  author={Robert S. Gazzale and Tapan Khopkar},
  year={2008}
}
By providing incentives for sellers to act in a trustworthy manner, reputation mechanisms in many online environments can mitigate moral-hazard problems when particular buyers and sellers interact infrequently. However, these mechanisms rely on buyers sharing their private information about sellers with the community, and thus may suffer from too little feedback when its provision is costly. In this experimental study, we compare a standard feedback mechanism to one in which sellers can inspect… CONTINUE READING

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