HETEROGENEOUS EFFECTS OF ONLINE REPUTATION FOR LOCAL AND NATIONAL RETAILERS

Peter Newberry; Xiaolu Zhou

doi:10.1111/iere.12397

HETEROGENEOUS EFFECTS OF ONLINE REPUTATION FOR LOCAL AND NATIONAL RETAILERS

Peter Newberry, Xiaolu Zhou

Economics

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

We study the heterogeneous effect of online reputation for sellers that differ in their national presence and examine how this heterogeneity affects the distribution of sales on a large Chinese platform. We estimate a demand model that incorporates a learning process and allow for the process to vary across sellers who are differentiated by their national presence. The estimates suggest that the impact of reputation is larger for local sellers. Using these estimates, we find that removing the reputation system would result in large shift of demand from local sellers to national sellers.

Original language	English (US)
Pages (from-to)	1565-1587
Number of pages	23
Journal	International Economic Review
Volume	60
Issue number	4
DOIs	https://doi.org/10.1111/iere.12397
State	Published - Nov 1 2019

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.1111/iere.12397

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abstract = "We study the heterogeneous effect of online reputation for sellers that differ in their national presence and examine how this heterogeneity affects the distribution of sales on a large Chinese platform. We estimate a demand model that incorporates a learning process and allow for the process to vary across sellers who are differentiated by their national presence. The estimates suggest that the impact of reputation is larger for local sellers. Using these estimates, we find that removing the reputation system would result in large shift of demand from local sellers to national sellers.",

author = "Peter Newberry and Xiaolu Zhou",

note = "Funding Information: >This research is supported by the National Natural Science Foundation of China (grant 71803162). We would like to thank Paul Grieco, Charles Murry, Mark Roberts, Chris Parker, Xiang Hui, and two anonymous referees for their helpful comments and suggestions Publisher Copyright: {\textcopyright} (2019) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association",

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N1 - Funding Information: >This research is supported by the National Natural Science Foundation of China (grant 71803162). We would like to thank Paul Grieco, Charles Murry, Mark Roberts, Chris Parker, Xiang Hui, and two anonymous referees for their helpful comments and suggestions Publisher Copyright: © (2019) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association

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HETEROGENEOUS EFFECTS OF ONLINE REPUTATION FOR LOCAL AND NATIONAL RETAILERS

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