IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v316y2002i1p413-429.html
   My bibliography  Save this article

Buyer feedback as a filtering mechanism for reputable sellers

Author

Listed:
  • Laureti, Paolo
  • Slanina, František
  • Yu, Yi-Kuo
  • Zhang, Yi-Cheng

Abstract

We propose a continuum model for the description of buyer and seller dynamics in an Internet market. The relevant variables are the research effort of buyers and the sellers’ reputation building process. We show that, if a commercial website gives consumers the possibility to rate credibly sellers they bargained with, vendors are forced to be more honest. This leads to mutual beneficial symbiosis between buyers and sellers; the overall enhanced volume of transactions contributes ultimately to the website, which facilitates the matchmaking service.

Suggested Citation

  • Laureti, Paolo & Slanina, František & Yu, Yi-Kuo & Zhang, Yi-Cheng, 2002. "Buyer feedback as a filtering mechanism for reputable sellers," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 316(1), pages 413-429.
    • Handle: RePEc:eee:phsmap:v:316:y:2002:i:1:p:413-429
    DOI: 10.1016/S0378-4371(02)01215-3
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437102012153
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/S0378-4371(02)01215-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Yi-Cheng, 2001. "Happier world with more information," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 104-120.
    2. Joseph E. Stiglitz, 2000. "The Contributions of the Economics of Information to Twentieth Century Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1441-1478.
    3. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabuthy, Yannick & Jacquemet, Nicolas & Marchand, Nadège, 2008. "Does resorting to online dispute resolution promote agreements? Experimental evidence," European Economic Review, Elsevier, vol. 52(2), pages 259-282, February.
    2. Laureti, Paolo & Moret, Lionel & Zhang, Yi-Cheng, 2005. "Aggregating partial, local evaluations to achieve global ranking," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 345(3), pages 705-712.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Homburg, Christian & Klarmann, Martin & Schmitt, Jens, 2010. "Brand awareness in business markets: When is it related to firm performance?," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 201-212.
    3. N. A. Dentchev & A. Heene, 2003. "Reputation management: Sending the right signal to the right stakeholder," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/175, Ghent University, Faculty of Economics and Business Administration.
    4. Mark D. Flood & Jonathan Katz & Stephen J. Ong & Adam Smith, 2013. "Cryptography and the economics of supervisory information: balancing transparency and confidentiality," Working Papers (Old Series) 1312, Federal Reserve Bank of Cleveland.
    5. Samuli Leppälä, 2015. "Economic Analysis Of Knowledge: The History Of Thought And The Central Themes," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 263-286, April.
    6. Aleksander Berentsen & Guillaume Rocheteau, 2004. "Money and Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 915-944.
    7. Ivanova, Daniela, 2018. "Сертификацията – Инструмент За „Зелени“ Комуникации В Глобалната Търговия [Certification - a tool for “green” communications in global trade]," MPRA Paper 96038, University Library of Munich, Germany.
    8. Tilles, Paulo F.C. & Ferreira, Fernando F. & Francisco, Gerson & Pereira, Carlos de B. & Sarti, Flavia M., 2011. "A Markovian model market—Akerlof’s lemons and the asymmetry of information," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(13), pages 2562-2570.
    9. Eric Scorsone & Stephan Weiler, 2004. "New Markets as Informational Asymmetries," Economic Development Quarterly, , vol. 18(3), pages 303-313, August.
    10. Peter Lunn, 2015. "Are Consumer Decision-Making Phenomena a Fourth Market Failure?," Journal of Consumer Policy, Springer, vol. 38(3), pages 315-330, September.
    11. Michał Pietrzak & Aleksandra Chlebicka & Paweł Kraciński & Agata Malak-Rawlikowska, 2020. "Information Asymmetry as a Barrier in Upgrading the Position of Local Producers in the Global Value Chain—Evidence from the Apple Sector in Poland," Sustainability, MDPI, vol. 12(19), pages 1-21, September.
    12. Stephan Leitner & Friederike Wall, 2021. "Decision-facilitating information in hidden-action setups: an agent-based approach," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 323-358, April.
    13. Ji, Xudong & Kaplan, Steven E. & Lu, Wei & Qu, Wen, 2020. "The role of voluntary internal control reporting in earnings quality: Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(2).
    14. Franziska Wolff & Norma Schönherr, 2011. "The Impact Evaluation of Sustainable Consumption Policy Instruments," Journal of Consumer Policy, Springer, vol. 34(1), pages 43-66, March.
    15. Suying Gao & Xiangshan Jin & Ye Zhang, 2021. "User Participation Behavior in Crowdsourcing Platforms: Impact of Information Signaling Theory," Sustainability, MDPI, vol. 13(11), pages 1-19, June.
    16. Antonelli, Cristiano, 2005. "The Governance Of Localized Knowledge: An Information Economics Approach For The Economics Of Knowledge," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200502, University of Turin.
    17. Liu, Lisa Yao & Lu, Shirley, 2021. "Information Exposure and Corporate Citizenship," Working Papers 312, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    18. Tony W. Tong & Jeffrey J. Reuer & Beverly B. Tyler & Shujun Zhang, 2015. "Host country executives' assessments of international joint ventures and divestitures: An experimental approach," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 254-275, February.
    19. Huffman, Wallace E., 2009. "Does information change behavior?," ISU General Staff Papers 200911020800001150, Iowa State University, Department of Economics.
    20. Cristiano Antonelli & Morris Teubal, 2007. "Venture Capitalism as a Mechanism for Knowledge Governance: the Emergence of the Markets for Knowledge Intensive Property Rights," ICER Working Papers 12-2007, ICER - International Centre for Economic Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:316:y:2002:i:1:p:413-429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.