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http://hdl.handle.net/2451/27740
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| Title: | The Dimensions of Reputation in Electronic Markets |
| Authors: | Ghose, Anindya
Panagiotis, Ipeirotis
Sundararajan, Arun |
| Keywords: | reputation
reputation systems
internet
ecommerce
text mining
electronic commerce
online feedback
panel data
econometrics
electronic markets |
| Issue Date: | 5-Nov-2008 |
| Series/Report no.: | CeDER-PP-2006-02 |
| Abstract: | We analyze how di erent dimensions of a seller's reputation a ect
pricing power in electronic markets. We do so by using text mining
techniques to identify and structure dimensions of importance from
feedback posted on reputation systems, by aggregating and scoring these
dimensions based on the sentiment they contain, and using them to
estimate a series of econometric models associating reputation with
price premiums. We nd that di erent dimensions do indeed a ect pricing
power di erentially, and that a negative reputation hurts more than a
positive one helps on some dimensions but not on others. We provide the
rst evidence that sellers of identical products in electronic markets di
erentiate themselves based on a distinguishing dimension of strength,
and that buyers vary in the relative importance they place on di erent
ful lment characteristics. We highlight the importance of textual
reputation feedback further by demonstrating it substantially improves
the performance of a classi er we have trained to predict future sales.
This paper is the rst study that integrates econometric, text mining
and predictive modeling techniques toward a more complete analysis of
the information captured by reputation systems, and it presents new
evidence of the importance of their e ective and judicious design. |
| URI: | http://hdl.handle.net/2451/27740 |
| Appears in Collections: | CeDER Published Papers
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