Featured Research

from universities, journals, and other organizations

Established EBay Sellers Get Higher Prices For Good Reputations

Date:
July 8, 2006
Source:
University of Michigan
Summary:
EBay sellers with established reputations can expect about 8 percent more revenue than new sellers marketing the same goods, a new University of Michigan study shows.

EBay sellers with established reputations can expect about 8 percent more revenue than new sellers marketing the same goods, a new University of Michigan study shows.

Related Articles


"People with good reputations are rewarded and people with no reputations are not trusted as well as people who have established reputations," said Paul Resnick, professor in the U-M School of Information and the study's principal author.

The study is the first known randomized controlled look at the value of eBay reputations in the natural setting of actual eBay auctions. The findings showed that eBay's feedback system—the cornerstone of the online auction site—works as it should, by rewarding sellers who have more positive feedback.

The study, "The Value of Reputation on eBay: A Controlled Experiment," is available online in the journal Experimental Economics. It was co-written by Resnick, Richard Zeckhauser of Harvard University, graduate student Kate Lockwood and eBay seller John Swanson.

Surprisingly, the researchers found that one or two negative feedbacks did not hurt new sellers, but it remains unclear why buyers are willing to cut new sellers with negative feedback a little slack.

They offer several explanations, but Resnick said it's likely that buyers are leery of new sellers no matter what the feedback.

"Either way, they aren't trusted," he said.

Resnick added that when researchers conducted the study in 2003, eBay did not show the percentage of negative feedback so it was not obvious whether a relatively new seller had any negative feedback.

The group enlisted the help of an established eBay vendor to sell vintage post cards. The seller set up several new accounts and listed the matching items on all the accounts on alternate weeks. They eventually added negative feedback to some of the new accounts.

There is still much to be learned about the value of feedback on eBay and other online auction sites, Resnick said. His group is currently trying to estimate how frequently buyers and sellers reciprocate the positive feedback they get from one another versus just independently rating the transactions. In this way, researchers will understand what the feedback really means and how informative it is overall.

In earlier work, the group discovered that negative feedback on eBay comes in clumps, and that is partly a result of "stoning," where buyers are more apt to throw stones once they see one negative feedback. The results did not show that sellers changed their behavior after receiving negative feedback.


Story Source:

The above story is based on materials provided by University of Michigan. Note: Materials may be edited for content and length.


Cite This Page:

University of Michigan. "Established EBay Sellers Get Higher Prices For Good Reputations." ScienceDaily. ScienceDaily, 8 July 2006. <www.sciencedaily.com/releases/2006/07/060708083957.htm>.
University of Michigan. (2006, July 8). Established EBay Sellers Get Higher Prices For Good Reputations. ScienceDaily. Retrieved October 30, 2014 from www.sciencedaily.com/releases/2006/07/060708083957.htm
University of Michigan. "Established EBay Sellers Get Higher Prices For Good Reputations." ScienceDaily. www.sciencedaily.com/releases/2006/07/060708083957.htm (accessed October 30, 2014).

Share This



More Mind & Brain News

Thursday, October 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Techy Tots Are Forefront of London's Baby Show

Techy Tots Are Forefront of London's Baby Show

AP (Oct. 28, 2014) Moms and Dads get a more hands-on approach to parenting with tech-centric products for raising their little ones. (Oct. 28) Video provided by AP
Powered by NewsLook.com
Cocoa Could Be As Good For Memory As It Is For A Sweet Tooth

Cocoa Could Be As Good For Memory As It Is For A Sweet Tooth

Newsy (Oct. 27, 2014) Researchers have come up with another reason why dark chocolate is good for your health. A substance in the treat can reportedly help with memory. Video provided by Newsy
Powered by NewsLook.com
Five-Year-Olds Learn Coding as Britain Eyes Digital Future

Five-Year-Olds Learn Coding as Britain Eyes Digital Future

AFP (Oct. 27, 2014) Coding has become compulsory for children as young as five in schools across the UK. Making it the first major world economy to overhaul its IT teaching and put programming at its core. Duration: 02:19 Video provided by AFP
Powered by NewsLook.com
Academic Scandal Shocks UNC

Academic Scandal Shocks UNC

AP (Oct. 23, 2014) A scandal involving bogus classes and inflated grades at the University of North Carolina was bigger than previously reported, a new investigation found. (Oct. 23) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins