Several previous studies have highlighted the role of feedback mechanisms in the success of electronic marketplaces. This paper contends that the effectiveness of online feedback mechanisms passes through two channels, namely a ‘reputational’ effect that has been largely documented in the...

Trust is fragile. It is hard to build but easy to destroy. In this paper, we explore the fragility of trust in a stylized laboratory environment. We ask whether transgression outside a direct send-and-return relationship destroys trust and, if so, whether a competition against outsiders or an...

This paper focuses on decision making under risk, comparing group and individual risk preferences in a lottery-choice experiment. In the individual treatment, subjects make choices individually; in the group treatment, each subject placed in a group made lottery choice via voting. In the choice...