The Impact of Reputation Timing and Source on Auction Outcomes

Abstract This paper uses data from electric guitar auctions on eBay to further examine the impact of reputation on the likelihood that an auction ends in a sale. It extends the existing literature by examining both the impact of the overall eBay feedback rating as well as feedback from shorter time periods. The results of this paper suggest that recent feedback, and in particular recent negative feedback, is of particular importance in explaining the likelihood that an auctioned item sells. Other feedback related factors included in this paper are measures for the source of feedback (i.e. buying or selling behavior) and whether negative feedback is product or seller related.