This paper uses data collected from eBay's website to identify why buyers
fail to leave feedback in online markets, especially negative feedback. One
potential reason is that it takes more time to leave a negative feedback.
For example, in 2003, eBay introduced an additional page that members with
feedback scores of 10 or less had to read prior to leaving neutral or
negative feedback. The purpose often added was to ensure that the members
understood the impact of leaving these types of comments. Another reason why
buyers may not leave feedback is a fear of retaliation by strategic sellers.
For instance, a strategic seller may wait until the buyer leaves the
feedback and then retaliate against any buyers who leave negative feedback.
Preliminary results show that the fear of retaliation is an important reason
not to participate. Thus a potential rebate mechanism that the market maker
(e.g. eBay) can use to induce buyers to leave feedback is by providing an
option for sellers in terms of an automatic feedback contingent on receiving
payment.