The effect of competition on discrimination in online markets-Anonymity and selection.

ABSTRACT: Empirical studies show that discrimination by identity found in offline markets also prevails online. This paper reveal that in a competitive market, buyers that intend to discriminate exist but they are prevented from influencing the market outcome. To this end, we construct a field experiment on eBay, where half of the sellers disclose their names in their usernames while the other half do not. eBay, however, automatically discloses the seller's names to the buyer after the auction. In the anonymous auctions, winning bidders thus learn the identity of the seller after the auction ends, and here we find buyers to discriminate against sellers with foreign-sounding names by leaving them feedback less often. However, there is no such discrimination in feedback provision when the seller name

SUBMITTER: von Essen E 

PROVIDER: S-EPMC6713341 | biostudies-literature | 2019

REPOSITORIES: biostudies-literature