Measuring the Demand Effects of Formal and Informal Communication : Evidence from Online Markets for Illicit Drugs

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...

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Detalles Bibliográficos
Autor principal: Armona, Luis (Autor)
Tipo de documento: Electrónico Libro
Lenguaje:Inglés
Publicado: 2018
En:Año: 2018
Acceso en línea: Volltext (kostenfrei)
Verificar disponibilidad: HBZ Gateway
Palabras clave:
Research
Descripción
Sumario: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