Category Archives: L Industrial Organization

Does it pay off to motivate consumers to leave feedback?

The importance of online customer-to-customer (C2C) marketplaces has been growing and nowadays Taobao, the biggest platform in China, has 500 millions of registered users. Such platforms have a common inherent issue – the presence of asymmetric information and adverse selection problems, which obstruct trade. Fortunately, the online world allows buyers to leave feedback assessing how… Read More »