NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Designing Online Marketplaces: Trust and Reputation Mechanisms

Michael Luca

Chapter in NBER book Innovation Policy and the Economy, Volume 17 (2017), Shane Greenstein, Josh Lerner, and Scott Stern, editors (p. 77 - 93)
Conference held April 12, 2016
Published in February 2017 by University of Chicago Press
© 2017 by the National Bureau of Economic Research
in NBER Book Series Innovation Policy and the Economy

Online marketplaces have proliferated over the past decade, creating new markets where none existed. By reducing transaction costs, online marketplaces facilitate transactions that otherwise would not have occurred and enable easier entry of small sellers. One central challenge faced by designers of online marketplaces is how to build enough trust to facilitate transactions between strangers. This paper provides an economist’s toolkit for designing online marketplaces, focusing on trust and reputation mechanisms.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.

You may be able to access the full text of this document via the Document Object Identifier.

This paper was revised on September 20, 2016

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.1086/688845

This chapter first appeared as NBER working paper w22616, Designing Online Marketplaces: Trust and Reputation Mechanisms, Michael Luca
Users who downloaded this chapter also downloaded* these:
Luca w22616 Designing Online Marketplaces: Trust and Reputation Mechanisms
Nakamura, Shaw, Freeman, Nakamura, and Pyman Jobs Online
Bresnahan and Yin Adoption of New Information and Communications Technologies in the Workplace Today
Miller and Tucker Frontiers of Health Policy: Digital Data and Personalized Medicine
Einav, Farronato, and Levin w21496 Peer-to-Peer Markets
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us