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Quality certificates alleviate consumer aversion to sponsored search advertising

Hui, Xiang; Liu, Meng - 2022

We study consumer response towards sponsored search advertising and how to improve advertising performance on a large e-commerce platform. Our research design is based on a field experiment which randomizes the salience of ad disclosure to consumers, and a natural experiment which eradicates a...

Persistent link: https://www.econbiz.de/10013342873

Contesting fake news

Rehsmann, Daniel; Roussillon, Béatrice; Schweinzer, Paul - 2023

We model competition on a credence market governed by an imperfect label, signaling high quality, as a rank-order tournament between firms. In this market interaction, asymmetric firms jointly and competitively control the underlying quality ranking's precision by releasing individual...

Persistent link: https://www.econbiz.de/10014336462

Apparent competition in two-sided platforms

Guven, Gokhan; Inci, Eren; Russo, Antonio - 2017

We study a platform's design of membership and transaction fees when sellers compete and buyers cannot observe the prices and features of goods without incurring search costs. The platform alleviates sellers' competition by charging them transaction fees that increase with sales revenue, and...

Persistent link: https://www.econbiz.de/10011721758

Online review updating : prevalence and implications for platforms and businesses

Pocchiari, Martina; Schoenmueller, Verena; Dover, Yaniv - 2024

This study documents the existence and prevalence of the “review updating” phenomenon, where consumers change the ratings and content of their existing reviews, and examines its implications for platforms and businesses. Using both primary and secondary data, a dataset comprising 3 million...

Persistent link: https://www.econbiz.de/10015134064

Salience in retailing : vertical restraints on internet sales

Helfrich, Magdalena; Herweg, Fabian - 2017 - This version: August 14, 2017

We provide an explanation for a frequently observed vertical restraint in ecommerce, namely that brand manufacturers partially or completely prohibit that retailers distribute their high-quality products over the internet. Our analysis is based on the assumption that a consumer's purchasing...

Persistent link: https://www.econbiz.de/10011717196

Targeted incentives, broad impacts : evidence from an e-commerce platform

Hui, Xiang; Liu, Meng; Chan, Tat - 2022

Digital platforms sometimes offer incentives to a subset of sellers to nudge behavior, possibly affecting the behavior of all sellers in the equilibrium. In this paper, we study a policy change on a large e-commerce platform that offers financial incentives only to platform-certified sellers...

Persistent link: https://www.econbiz.de/10013342943

When and why do buyers rate in online markets?

Hui, Xiang; Klein, Tobias J.; Stahl, Konrad - 2022

Online ratings play an important role in many markets. We study the often disputed information content of these ratings, by proposing a reduced-form Bayesian model of the typical buyer's rating decision. Our empirical evidence based on eBay raw data is in line with even intricate predictions...

Persistent link: https://www.econbiz.de/10012815762

Lock-in effects in online labor markets

Ciotti, Fabrizio; Hornuf, Lars; Stenzhorn, Eliza - 2021

This article reports on an investigation of the role of lock-in exploitation and the impact of reputation portability … on workers’ switching behaviors in online labor markets. Online platforms using reputation mechanisms typically prevent … comparing a policy regime with and without reputation portability, we vary lock-in exploitation using platform fees to consider …

Persistent link: https://www.econbiz.de/10012652857

Dynamic entry in vertically differentiated markets

Auer, Raphael A.; Sauré, Philip - 2016

We develop a model of vertical innovation in which firms incur a market entry cost and choose a unique level of quality. Once established, firms compete for market shares, selling to consumers with heterogeneous tastes for quality. The equilibrium of the pricing game exists and is unique within...

Persistent link: https://www.econbiz.de/10011547909

Unveiling shades of green food beyond labels : evidence from an online experiment to climate adaptation

Castaldo, Cecilia; Giaccherini, Matilde; Pallante, Giacomo - 2024

We investigate the role of information strategy in shifting the purchasing preferences of “green” organic consumers towards a subset of “greener” products that foster adaptation to climate change. We focus on organic pasta, a widely consumed food, to conduct field experiment that...

Persistent link: https://www.econbiz.de/10014551879