Price, Quality and Reputation: Evidence From An Online Field Experiment
Ginger Jin and Andrew Kato ,
( 37 )
RAND Journal of Economics

This paper examines the link between price, quality, seller claims and seller reputation in Internet auctions. To obtain a precise measure of quality, we purchased actual baseball cards and have them professionally graded. These cards were systematically purchased so half of the sample came from sellers making high quality claims and the other half from sellers making modest or no claim. We compare the quality data to the prices paid by online buyers for goods with similar claims. We find that some buyers in the online ungraded market are misled by non-credible claims of quality.

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