The actual structure of eBay's feedback mechanism and early evidence on the effects of recent changes

Abstract

eBay's feedback mechanism is considered crucial to establishing and maintaining trust on the world's largest trading platform. Yet, there is confusion among users about its exact institutional details, which changed substantially in May 2007. Most importantly, buyers now have the possibility to leave additional, anonymous ratings on sellers on four different criteria. We provide a thorough description of the institutional details of eBay's feedback mechanism, including those changes. Then, we provide first descriptive evidence on the impact of those changes on rating behaviour.

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