eBay's Feedback Change Leads to Marketplace Quality Boost by 77%
The article looks at how eBay changed its feedback system in 2008 to stop sellers from giving negative feedback to buyers. This change helped improve the quality of the marketplace by making low-quality sellers leave or sell less, and by encouraging sellers to provide better service. The researchers found that 49% to 77% of the marketplace improvement was due to fewer bad sellers and the rest was because sellers improved their service.