Reputation in Online Auctions: The Market for Trust Harvard Case Solution & Analysis

Internet market has dramatically changed the retail landscape. Eliminating barriers of geography, as well as the cost of maintaining physical store, online markets have created the "democracy" of buyers and sellers. However, the fluidity of the market and the relative anonymity of transactions was the problem of maintaining trust is critical. Solution "trust" is a key competitive advantage for many successful players in the online space. For example, most of the remarkable success of eBay has been associated with its ability to create valuable and informative reputation for its users through a feedback system. Castle in the reputation associated with the user on eBay helped him to prevent problems in the Amazon, and Yahoo. Describes how the decision in eBay "credibility problem" led to the creation of a "market feedback", whose sole purpose is to "manufacture" a reputation for eBay users. Presents the study and statistical analysis of the market in order to show that its content is a major challenge for the future competitive advantage of eBay and, more generally, to address the "problem of trust" in other online marketplace. "Hide
by John Brown, Jennifer Brown, John Morgan Source: California Management Review 24 pages. date : November 1, 2006. Prod. #: CMR351-PDF-ENG

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