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The duality of reputation portability: Investigating the demand effect of imported ratings across online labor markets

Author

Listed:
  • Diana Tran Nhat

    (Technische Universität Berlin)

  • Laura Thäter

    (Johannes Kepler University Linz)

  • Timm Teubner

    (Technische Universität Berlin)

Abstract

Online labor platforms have been criticized for fueling precarious working conditions. Due to their platform-bound reputation systems, switching costs are prohibitively high and workers are locked-in to the platforms. One widely discussed approach to addressing this issue and improving workers’ position is the portability of reputational data. In this study, we conduct an online experiment with 239 participants to test the effect of introducing reputation portability and to study the demand effect of imported ratings. We find that the volume of imported ratings stimulates demand, although to a lower degree than onsite ratings. Specifically, the effect of imported ratings corresponds to about 35% of the effect of onsite ratings. The results imply the possibility of unintended cross-market demand concentration effects that especially favor workers with high rating volumes (“superstars”).

Suggested Citation

  • Diana Tran Nhat & Laura Thäter & Timm Teubner, 2024. "The duality of reputation portability: Investigating the demand effect of imported ratings across online labor markets," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-21, December.
    • Handle: RePEc:spr:elmark:v:34:y:2024:i:1:d:10.1007_s12525-024-00706-2
    DOI: 10.1007/s12525-024-00706-2
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    Keywords

    Online labor markets; Data portability; Reputation; Trust; Adverse effects; Demand concentration;
    All these keywords.

    JEL classification:

    • D26 - Microeconomics - - Production and Organizations - - - Crowd-Based Firms

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