Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 18, 2020 erstellt
Description:
This paper seeks to quantify the difference in prices between products sold by high and low reputation sellers, and how that difference is related to the degree of competition they face. While past empirical work has found that high reputation sellers can often charge more for their products than low reputation sellers, theory predicts that this difference decreases when the competitive landscape becomes fierce. Accordingly, I find that on Amazon.com, 5–star sellers charge up to 5.2% more than 4.5 star sellers when there are few sellers selling the same product. However, as the number of sellers increases, the price difference between 5–star sellers’ listings and those of 4.5 star sellers disappears