This paper introduces a model for analyzing marketplaces, such as eBay, which rely on binary reputation mechanisms for quality signaling and quality control. In our model sellers keep their actual quality private and choose what quality to advertise. The reputation mechanism is primarily used to...

Social media have great potential to support diverse information sharing, but there is widespread concern that platforms like Twitter do not result in communication between those who hold contradictory viewpoints. Because users can choose whom to follow, prior research suggests that social media...

There is growing evidence that consumers are influenced by Internet-based opinion forums before making a variety of purchase decisions. Firms whose products are being discussed in such forums are, therefore, tempted to try to manipulate consumer perceptions by posting costly anonymous messages...

There is growing evidence that consumers are influenced by Internet-based opinion forums before making a variety of purchase decisions. Firms whose products are being discussed in such forums are, therefore, tempted to try to manipulate consumer perceptions by posting costly anonymous messages...

This paper offers a systematic exploration of reputation mechanism design in trading environments with opportunistic sellers, imperfect monitoring of a seller's actions and two possible seller effort levels, one of which has no value to buyers. The objective of reputation mechanisms in such...

Commerce depends on buyers and sellers fulfilling their contractual obligations; mechanisms inducing such performance are essential to well functioning markets. Internet-enabled reputation mechanisms that collect and disseminate consumer feedback have emerged as prominent means for inducing...