Uncertainty Avoidance, Third Party Insurance, and Reputation Effects – Analysis and Results of Study 3

Abstract

The following chapter presents the analysis and results of the third study. The purposes of the study are threefold: First, the effect of seller reputation on the probability of sale, the number of bidders, and the auction price are examined in two country clusters. The first country cluster includes France and Germany – both are countries with comparable regulations related to electronic commerce and a national culture characterized by high uncertainty avoidance and low trust. The second country cluster includes the UK and the U.S. – both are countries with a comparable legal framework related to electronic commerce and a national culture characterized by low uncertainty avoidance and high trust. The second objective of this study is to compare the effect of seller reputation on all three auction outcomes between the two country clusters.