The Impact of Socioeconomic and Cultural Differences on Online Trade

Daniel W. Elfenbein, Raymond Fisman and Brian McManus

No 26197, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: D12 D91 F14 L15 R12 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-cul, nep-geo and nep-soc
Note: IO ITI PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Daniel W. Elfenbein & Raymond Fisman & Brian McManus, 2023. "The Impact of Socioeconomic and Cultural Differences on Online Trade," Management Science, vol 69(10), pages 6181-6201.

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Journal Article: The Impact of Socioeconomic and Cultural Differences on Online Trade (2023)
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