TY  - JOUR
AU  - Elfenbein,Daniel
AU  - Fisman,Raymond
AU  - McManus,Brian
TI  - Reputation, Altruism, and the Benefits of Seller Charity in an Online Marketplace
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15614
PY  - 2009
Y2  - December 2009
UR  - http://www.nber.org/papers/w15614
L1  - http://www.nber.org/papers/w15614.pdf
N1  - Author contact info:
Daniel Elfenbein
Olin School of Business
Washington University in St. Louis
St Louis, MO 63130
E-Mail: elfenbein@wustl.edu

Raymond Fisman
School of Business
Columbia University
622 Uris Hall
3022 Broadway
New York, NY 10027
Tel: 212/854-9157
Fax: 212-316-9219
E-Mail: rf250@columbia.edu

Brian McManus
Olin School of Business
Washington University in St. Louis
St Louis, MO 63130
Tel: 314-935-4915
E-Mail: mcmanus@wustl.edu
AB  - We investigate the impact of charity tie-ins on transaction probabilities and sale prices using a large database of eBay auctions.  We examine “natural experiments” of precisely matched clusters of charity and non-charity auctions with identical titles, subtitles, sellers, and start prices.  We find a 6 to 14 percentage point increase in sale probability and a 2 to 6 percent greater maximum bid for charity items, depending on the fraction of auction proceeds that is donated to charity.  The impact on sale probability and price is most pronounced among sellers without extensive eBay histories, suggesting that consumers view charity as a signal of seller quality and a substitute for reputation.  We also find that charity-tied products by all sellers are more likely to sell (and at higher prices) immediately following Hurricane Katrina, implying that consumers derive direct utility from seller charity at times when charity is particularly salient.
ER  -