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The Impact of Socioeconomic and Cultural Differences on Online Trade / Daniel W. Elfenbein, Raymond Fisman, Brian McManus.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Elfenbein, Daniel W.
Contributor:
National Bureau of Economic Research.
Fisman, Raymond.
McManus, Brian.
Series:
Working Paper Series (National Bureau of Economic Research) no. w26197.
NBER working paper series no. w26197
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2019.
Summary:
We use U.S. eBay data to investigate how trade is influenced by differences in socioeconomic characteristics, tastes, and trust. States' similarity in cultural characteristics (ethnicity, religious affiliations, and political behavior) is predictive of online trade; cultural similarity similarly predicts trade between finer (three-digit zip code) geographies. The culture-trade relationship is mediated in part by consumers' tastes, and is stronger for transactions with sellers who lack extensive reputations or certification, suggesting that consumers infer seller trustworthiness from cultural similarity. There is no correlation between cultural similarity and buyer satisfaction, consistent with perceived differences in trustworthiness not being validated by actual transactions.
Notes:
Print version record
August 2019.

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