Country-Specific Effects of Reputation

Electronic markets have grown rapidly in recent years. One of the largest markets on the Internet is the online auction platform eBay that is active in more than 40 countries and has more than 80 million active users. In order to reduce the problems caused by information asymmetries and one-sided specific investments, eBay employs the same reputation system in the various international markets, which are characterised by different institutional environments. Empirical studies show that the reputation of transaction partners affects the economic outcomes of online auction markets. In four studies, Christopher Schlagel investigates the country-specific effects of reputation and the underlying reasons for these differences.