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α: calibrated so average coauthorship-adjusted count equals average raw count
We study how an improvement in market transparency affects seller exit and continuing sellers' behavior in a market setting that involves informational asymmetries. The improvement was achieved by reducing strategic bias in buyer ratings. It led to a significant increase in buyer satisfaction with seller performance, but not to an increase in seller exit. When sellers had the choice between exiting--a reduction in adverse selection--and staying but improving behavior--a reduction in moral hazard--they preferred the latter. Increasing market transparency led to better market outcomes.