Ruhr Economic Papers

Ruhr Economic Papers #253

Communication and Reputation in Procurement Auctions – Some Empirical Evidence

by Timo Heinrich

University of Duisburg-Essen, 04/2011, 13 S./p., 8 Euro, ISBN 978-3-86788-295-8

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Abstract

This paper studies the role of communication and reputation in market interactions using data from online procurement auctions. Not only positive reputation ratings but also engaging in communication increases a bidder’s probability of winning the auction. Messages are primarily used to reduce the asymmetric information associated with transactions.

JEL-Classification: D44, D83, L14

Keywords: Communication; procurement auctions; reputation

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