RT Book
T1 Measuring the Demand Effects of Formal and Informal Communication : Evidence from Online Markets for Illicit Drugs
A1 Armona, Luis
LA English
YR 2018
UL https://krimdok.uni-tuebingen.de/Record/1866133640
AB I present evidence that communication between marketplace participants is an important influence on market demand. I find that consumer demand is approximately equally influenced by communication on both formal and informal networks- namely, product reviews and community forums. In addition, I find empirical evidence of a vendor's ability to commit to disclosure dampening the effect of communication on demand. I also find that product demand is more responsive to average customer sentiment as the number of messages grows, as may be expected in a Bayesian updating framework
K1 Research