Reputation worth 7.6% of price, UMich sez

Howard Rheingold caught this University of Michigan paper: “The Value of Reputation on eBay: A Controlled Experiment.” The authors find in controlled experiments that a high reputation score on eBay is worth about a 7.6% price premium. This is pretty low when you compare it to the price premium that eBay itself commands over other auction sites, such as Yahoo! (at least in the US), but it’s an interesting finding anyway.