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On the Internet you can be anyone: An experiment on strategic avatar choice in online marketplaces

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  • Abraham, Diya
  • Greiner, Ben
  • Stephanides, Marianne

Abstract

In order to decrease social distance and increase trust on their platforms, many online marketplaces allow traders to be represented by profile pictures or avatars. In a laboratory experiment, we investigate whether the presence of seller avatars affects trading behavior in a market. We contrast markets without avatars with markets where avatars genuinely represent traders and markets where avatars can be freely changed at any time and may thus be chosen strategically. At the aggregate level, we find that the presence of genuine avatars increases the trustworthiness of sellers, but that this effect is undone when avatars can be chosen strategically. We do not detect aggregate effects on buyers’ trusting choices. Female avatars are more trusted, and correspondingly in the treatment with free avatar choice men are more likely to represent themselves with a female avatar than vice versa.

Suggested Citation

  • Abraham, Diya & Greiner, Ben & Stephanides, Marianne, 2023. "On the Internet you can be anyone: An experiment on strategic avatar choice in online marketplaces," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 251-261.
    • Handle: RePEc:eee:jeborg:v:206:y:2023:i:c:p:251-261
    DOI: 10.1016/j.jebo.2022.11.033
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    More about this item

    Keywords

    Online marketplaces; Market design; Trust and trustworthiness; Avatars; Strategic behavior;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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