The Effect of Reputation on Selling Prices in Auctions

Gürtler, Oliver and Grund, Christian (May 2006): The Effect of Reputation on Selling Prices in Auctions. SFB/TR 15 Discussion Paper No. 114

Abstract

In economic approaches it is often argued that reputation considerations influence the behavior of individuals or firms and that reputation influences the outcome of markets. Empirical evidence is rare though. In this contribution we argue that a positive reputation of sellers should have an effect on selling prices. Analyzing auctions of popular DVDs at eBay we, indeed, find support for this hypothesis. Secondary, we unmask the myth that it is promising for eBay sellers to let their auction end at the evening, when many potential buyers may be online.

• Item Type: Paper (Discussion Paper)
• Keywords: Reputation, eBay feedback system, auction
• Collections: Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems; Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > B4 - Die Gestaltung von Turnieren im Rahmen der Corporate Governance
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: D44, D82, K12, L81
• Language: English