e-Honesty: when does it pay?

Research paper by Georgiy Lyudyno, Sudipta Sarangi

Indexed on: 10 Aug '05Published on: 10 Aug '05Published in: NETNOMICS: Economic Research and Electronic Networking


We consider a model of strategic reputation for online sales using an exchange format. In the model sellers can sell a cheap good to build up reputation, and then cheat when selling a more expensive good. We identify conditions under which a seller will always be honest.