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Seller Reputation and Price Gouging

Thread in 'The Pasture' started by araomd, May 5, 2020.

  1. araomd

    araomd ODT Junkie!

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    So there is real data that noobs price gouge and high reputation sellers don't.


    Seller Reputation and Price Gouging:
    Evidence from the COVID-19 Pandemic

    Lu´ıs Cabral
    New York University and CEPR
    Lei Xu
    Bank of Canada
    April 2020
    Abstract. We test the theory that seller reputation moderates the effect of demand shocks
    on a seller’s propensity to price gouge. From mid January to mid March 2020, 3M masks
    were priced 2.72 times higher than Amazon sold them in 2019. However, the difference
    (in price ratios) between a post-COVID-19 entrant and an established seller is estimated
    to be about 1.6 at times of maximum scarcity, that is, post-COVID-19 entrants price at
    approximately twice the level of established sellers. Similar results are obtained for Purell
    hand sanitizer. We also consider cumulative reviews as a measure of what a seller has to
    lose from damaging its reputation and, again, obtain similar results. Finally, we explore
    policy implications of our results.
    Keywords: price gouging, COVID-19, Amazon.
    JEL codes: D01.

    http://leixu.org/xu_price_gouging.pdf
     
    Nonliberal and hikingthehills like this.
  2. BIKER13

    BIKER13 Redneck Expert Supporter

    Special Hen Supporter

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    somebody is real bored
     
  3. Kahrnut

    Kahrnut The Hen that laid the Golden Legos

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  4. Cadcom

    Cadcom The Hen that laid the Golden Legos Supporter

    Supporter

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    I prefer to call it "leveraging the stimulus". "Price gouging" has just been beat to death on here.
     
    Nonliberal likes this.
  5. Ken Ford

    Ken Ford Administrator Staff Member Supporter

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    Ain’t it a little early for drinking? LOL
     
    david1, araomd and JWC like this.
  6. Kahrnut

    Kahrnut The Hen that laid the Golden Legos

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    It's after 5pm in Addis Ababa :very_drunk:
     
  7. BillsCamino

    BillsCamino Wild Bill Supporter

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