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

• Tác giả: Luis Armona
• Ngôn ngữ: eng
• Ký hiệu phân loại: 900.72 History, geography, and auxiliary disciplines
• Thông tin xuất bản: 2018
• Bộ sưu tập: Báo, Tạp chí
• ID: 161803

Tóm tắt

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.