Does E-commerce Reputation Mechanism Matter?
- 经济学院－会议论文 
Asymmetric information is considered a common issue across E-commerce platforms. Reputation mechanism is introduced to solve this problem. By using the transaction data from Taobao, the largest C2C platform in China, this paper does empirical study on the relationship between sellers' reputation and sales. The estimation results show that the impact is non-linear. Below the reputation threshold level, sales decrease with improved reputation. Above the threshold level, sales increase with improved reputation. Positive feedback ratio, negative feedback ratio and price are not the deciding factor on sales. When there are certain factors strengthening trust, sales even have positive relationship with price. In the absence of legal framework of reputation, the platform-specific reputation mechanism and trading history play the most important role in consumers' decision process. (C) 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of [CEIS 2011]