Reputation, Altruism, and the Benefits of Seller Charity in an Online Marketplace

We investigate the impact of charity tie-ins on transaction probabilities and sale prices using a large database of eBay auctions. We examine “natural experiments” of precisely matched clusters of charity and non-charity auctions with identical titles, subtitles, sellers, and start prices. We find a 6 to 14 percentage point increase in sale probability and a 2 to 6 percent greater maximum bid for charity items, depending on the fraction of auction proceeds that is donated to charity. The impact on sale probability and price is most pronounced among sellers without extensive eBay histories, suggesting that consumers view charity as a signal of seller quality and a substitute for reputation. We also find that charity-tied products by all sellers are more likely to sell (and at higher prices) immediately following Hurricane Katrina, implying that consumers derive direct utility from seller charity at times when charity is particularly salient.

How accurately can other people infer your thoughts -- and does culture matter?

This research investigated how accurately people infer what others are thinking after observing a brief sample of their behaviour and whether culture/similarity is a relevant factor. Target participants (14 British and 14 Mediterraneans) were cued to think about either positive or negative events they had experienced. Subsequently, perceiver participants (16 British and 16 Mediterraneans) watched videos of the targets thinking about these things. Perceivers (both groups) were significantly accurate in judging when targets had been cued to think of something positive versus something negative, indicating notable inferential ability. Additionally, Mediterranean perceivers were better than British perceivers in making such inferences, irrespective of nationality of the targets, something that was statistically accounted for by corresponding group differences in levels of independently measured collectivism. The results point to the need for further research to investigate the possibility that being reared in a collectivist culture fosters ability in interpreting others’ behaviour

Last-minute bidding in eBay charity auctions

Relative to typical eBay auctions, bidding in eBay charity auctions occurs earlier and also less frequently in the auctions' final seconds. This suggests that some charity bidders benefit from driving-up others' payments, as when auction revenue is a public good.Charity auctions Bid timing Bid sniping Preferences for giving Online auctions