• Corpus ID: 37520255

Reputation Inflation in an Online Marketplace

@inproceedings{Horton2015ReputationII,
  title={Reputation Inflation in an Online Marketplace},
  author={John Joseph Horton and N Leonard and Joseph M. Golden},
  year={2015}
}
Average public feedback scores given to sellers have increased strongly over time in an online marketplace. Changes in marketplace composition or improved seller performance cannot fully explain this trend. We propose that two factors inflated reputations: (1) it costs more to give bad feedback than good feedback when feedback is public because buyers fear retaliation and (2) this cost is increasing in the market’s average feedback score. Together, (1) & (2) push the market towards an… 

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