Cited by 530Digital Platforms and EconomicsAuction Theory and ApplicationsAccess Control and Trust

The DOI matches its Crossref record; 44 of the 44 references it cites were found in a registry or an index; 14 of the 82 sources its claims cite were checked for support.

Reputation and Feedback Systems in Online Platform Markets

Open access
Tadelis, Steven·2016·Annual Review of Economics

Abstract

Online marketplaces have become ubiquitous, as sites such as eBay, Taobao, Uber, and Airbnb are frequented by billions of users. The success of these marketplaces is attributed to not only the ease in which buyers can find sellers, but also the trust that these marketplaces help facilitate through reputation and feedback systems. I begin by briefly describing the basic ideas surrounding the role of reputation in facilitating trust and trade, and offer an overview of how feedback and reputation systems work in online marketplaces. I then describe the literature that explores the effects of reputation and feedback systems on online marketplaces and highlight some of the problems of bias in feedback and reputation systems as they appear today. I discuss ways to address these problems to improve the practical design of online marketplaces and suggest some directions for future research.

Overview

Integrity signals

Registry

Crossref · 10.1146/annurev-economics-080315-015325

Cites

44 of 44 references verified0 citation errors · 0 not checkable

Statistics

Nothing to recompute.

Verification

Claims the paper makes

51 No full text of the sources · 30 Own interpretation · 22 No basis given · 10 Sources not found · 8 Supported · 5 Partly supported · 2 Not checked yet · 2 Own result · 1 Supported so far · accuracy not yet measured

Show all 72 claims

  • It may state two separate claims as one. 45
  • Probably not a substantial claim. 22
59 of 59
  • The authors state this as an assumption.

    In the trade game, the buyer must send payment to the seller before the seller ships.

    “Assume that to transact the buyer needs to send payment to the seller first”
  • The authors state this as an assumption.

    The seller is either an honest seller who always ships or an opportunistic seller who maximizes expected payoff.

    “Now imagine that the seller can be one of two types: an honest seller or an opportunistic seller.An honest seller will always ship the item, whereas an opportunistic seller will maximize his expected payoff.”
  • The authors state this as an assumption.

    The buyer does not know the seller type but knows the probability p that the seller is honest.

    “The buyer does not know the seller type but does know that a seller is honest with probability p ∈ (0, 1).”
  • The authors state this as an assumption.

    The seller discounts future payoffs at a discount factor δ ∈ (0,1).

    “Imagine that the seller discounts future payoffs at a discount factor of δ ∈ (0, 1).”
  • The authors state this as an assumption.

    The buyer uses the same discount factor δ as the seller.

    “Assuming that the buyer too uses δ as her discount factor”
  • The authors state this as an assumption.

    In the two-stage game, the buyer believes the game will be played twice and an opportunistic seller will abuse trust always.

    “Imagine, for example, that the buyer believes that this trading game will be played twice and that an opportunistic seller will abuse trust always”
  • The authors state this as an assumption.

    The frequency of a seller's feedback is a good proxy for the frequency of actual transactions.

    “First, they assume that the frequency of a seller's feedback is a good proxy for the frequency of actual transactions”
  • The authors state this as an assumption.

    The nature of feedback correlates with buyer satisfaction.

    “second, they assume that the nature of feedback correlates with buyer satisfaction.”
  • The authors state this as an assumption.

    The mapping between seller behavior and DSRs was not affected by the change to one-sided feedback.

    “their key assumption that the mapping between seller behavior and DSRs was not affected by the change to one-sided feedback.”
  • The authors state this as an assumption.

    Reputation is two-sided.

    “based on several assumptions, most notably that reputation is two-sided”
  • The authors state this as an assumption.

    Silence is bad news.

    “The tenet of their approach is that silence is bad news.”
  • The paper relies on this without support.

    The economic literature assumes that market participants understand the equilibrium they are playing and correctly infer information from signals and actions.

    “The economic literature takes the view that market participants understand the equilibrium they are playing and correctly infer information from signals and actions.”
12 of 12

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

Each contradiction between two passages listed here was confirmed by an independent check.

1 of 1

Citations

Cites

Show all 42 references

Research works printed but not linked: 3

  1. Bond E, 1982, Am. Econ. Rev., 72, 836
  2. Hendricks K, 1988, Am. Econ. Rev., 78, 865
  3. Klein T, 2016, J. Pol. Econ.

Cited by

Sorted by citations

Items 201–300 of 530

Metadata

Authors
Tadelis, S.
Affiliations
National Bureau of Economic Research (US)
Corresponding author
Tadelis, Steven
Venue
Annual Review of Economics
Published
2016-10-31
Volume
8
Issue
1
Pages
321-340
ISSN
  • 1941-1383 (ISSN-L)
  • 1941-1391
OpenAlex
W2517839752
Cited by
524
References
42
Citations by year
2026: 80 · 2025: 67 · 2024: 66 · 2023: 66 · 2022: 57 · 2021: 53 · 2020: 49 · 2019: 42 · 2018: 24 · 2017: 13 · 2016: 6
FWCI
10.77
Type
journal article
Language
en
Open access
Locations
  • Annual Review of Economics (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • eScholarship (California Digital Library) (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Auction Theory and Applications
  • Physical Sciences › Computer Science › Computer Networks and Communications › Access Control and Trust
Keywords
online marketplaces, reputation systems, feedback systems, trust, online trade, algorithmic bias, peer review

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