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Original Articles

Whose feedback matters? Empirical evidence from online auctions

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ABSTRACT

The seller rating systems based on feedback are routinely used to minimize risks in online auctions. We explore the effects of the feedback from buyers and sellers separately. The results reveal that feedback from auction issuer’s selling activity increase both sales and new visits of auction. The effects of feedback from buying activity are significant only for visits.

JEL CLASSIFICATION:

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 We controlled for some auction dynamics by including time dummies.

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