Buyers pay for and sellers invest in a good reputation: More evidence from eBay

► I investigate seller reputation effects in anonymous online markets. ► I use a large set of process data (N ≈ 176,000) obtained from eBay. ► Sellers invest in their own reputation as much as buyers pay for it. ► Buyers pay for reputation in fixed price offers as much as they do in auctions. ► Buyers trade off sellers' reputations and prices within the set of offered items they bid on.