Returns on reputation in retail e-commerce

摘要: ABSTRACT The industrial organization literature suggests that firms invest in reputation to earn price premiums. Data from online auctions has revealed sellers are able returns on their reputations. This paper examines retail markets the same perspective. We study, data of homogeneous consumer products listed Pricegrabber.com May 2008 is analyzed with a hierarchical regression model using OLS and quantile regression. Contrary auctions, results indicate general, do not e-commerce. However, evidence very large small may benefit reputations competition. Moreover, we discover while an increase number lowers prices overall, control groups affected by this but universally. Keywords: retailing, e-commerce, competition, effects, asymmetric information (ProQuest: ... denotes formulae omitted.) 1. Introduction Internet gives consumers unprecedented power purchase decisions. Since cost search minimal Internet, buyers can easily compare across several vendors before purchase. While more accessible face information-related risks In e-commerce transactions, disclose sensitive information, such as credit card details, seller. Furthermore, it possible verify quality merchandise or identity seller, because delivered after seller received payment. Facing these problems need assurance cheat them. As result, good widely recognized brand could be valuable asset New services have reduced To make comparisons convenient, companies offer comparison shopping services. These websites enable providing up-to-date quotes for various products. Very often systems which collect distribute about past activities sellers. consequence, highly competitive marketplaces where associated any particular Comparison popular many them among 1000 most visited Internet1. flows translate into higher revenues, solid financial incentive participate markets. addition, they market customer base low method monitoring rivals. present great opportunity gain insights structures e-markets. determinants structure concentration, product differentiation, conditions entry exit (Jacobson O'Callaghan-Andreosso 1996). markets, identical barriers low. Therefore, concentration will determine structure. determines pricing profits, studying helps understand how shape competition Asymmetric between inspired numerous researchers inspect relationship seller's auctions. Overall, studies conclude allows some sellers2. there considerably less research burgeoning Baylis Perloff (2002) study e-markets two goods. …