Fixing feedback revision rules in online markets

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2023
Volume: 32
Issue: 2
Pages: 247-256

Authors (4)

Gary Bolton (not in RePEc) Kevin Breuer (not in RePEc) Ben Greiner (Universität Wien) Axel Ockenfels (Universität zu Köln)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Feedback withdrawal mechanisms in online markets aim to facilitate the resolution of conflicts during transactions. Yet, frequently used online feedback withdrawal rules are flawed and may backfire by inviting strategic transaction and feedback behavior. Our laboratory experiment shows how a small change in the design of feedback withdrawal rules, allowing unilateral rather than mutual withdrawal, can both reduce incentives for strategic gaming and improve coordination of expectations. This leads to less trading risk, more cooperation, and higher market efficiency.

Technical Details

RePEc Handle
repec:bla:jemstr:v:32:y:2023:i:2:p:247-256
Journal Field
Industrial Organization
Author Count
4
Added to Database
2026-01-25