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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14757
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| Title: | The Dimensions of Reputation in Electronic Markets |
| Authors: | Ghose, Anindya
Ipeirotis, Panagiotis G.
Sundararajan, Arun |
| Keywords: | Reputation
Reputation Systems
Text Mining
Opinion Mining
Online Feedback
Electronic Markets
Internet
Ecommerce
Electronic Commerce
Econometrics
Panel Data |
| Issue Date: | 2006 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | CeDER-06-02 |
| Abstract: | We present a framework for identifying the different dimensions of
online reputation and characterizing their influence on the pricing
power of sellers. Our theory predicts that sellers with better recorded
online reputation can successfully charge higher prices than competing
sellers of identical products, and that their pricing power increases
with their recorded level of experience. We develop and implement a new
text mining technique that identities and quantitatively assesses
dimensions of importance in reputation profiles, and use this technique
to create a new data set containing detailed reputation profiles and
prices for sellers in over 9,500 transactions for consumer software on
Amazon.com's online secondary marketplace. The estimation of a set of
econometric models on this data set validates the predictions of our
theory, and further, ranks these dimensions of reputation based on their
effect on measured seller value, identifying those that have the most
significant impact on reputation. This paper is the first study that
integrates econometric and text mining techniques toward a more complete
analysis of the information captured by reputation systems, and it
presents new evidence of the importance of their effective and judicious design. |
| URI: | http://hdl.handle.net/2451/14757 |
| Appears in Collections: | CeDER Working Papers
IOMS: Information Systems Working Papers
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