How Does Competition Affect Selling Price in Different Markets? In highly competitive environments with many sellers offering similar products, demand is elastic—small price changes can lead to significant shifts in consumer behavior This is common in grocery retail, where shoppers switch brands based on minor price differences
How Does the Variance of Product Ratings Matter? As one can imagine, both product attributes, qual-ity and mismatch cost, affect ratings Consumers who arrive late at the market can therefore infer the two product attributes from earlier ratings A high average rating in our model communicates to the consumers that the product has high quality, which increases subsequent price, demand, and
Product price alignment with seller service rating and . . . We apply the approach in a computational study and present a sensitivity analysis to gain insights on how much the seller can increase the price it charges customers given positive improvements in consumer satisfaction level and prevailing market conditions
Association Between Market Price and Seller Market . . . Seller characteristics could also affect price from the cost side since high service sellers would be expected to have higher costs associated with the provision of services than would low service sellers
Seller rating, price, and default in online auctions Specifically, we investigate both theoretically and empirically (1) whether seller ratings affect consumer valuations, particularly in the presence of insurance; (2) whether seller ratings are indicative of future default likelihood; and (3) whether a seller who is terminal (about to go out of business) is more likely to default prior to exiting