Reputation premium and reputation management: Evidence from the largest e-commerce platform in China
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文摘

This paper studies the life-cycle effects of reputation.

Data come from China's largest e-commerce platform, Taobao.com">Taobao.com.

We find a substantial return to reputation, but only for established sellers.

New sellers receive less revenue as their ratings increase.

This finding suggests the existence of reputation management.

This can occur when the dynamic effect of reputation dominates the static one.

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