SKK GSB

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  • March 19, 2026
  • Finance

Consumer Search with Random Prominence: Price Discounting by Badged Sellers and Evidence from Airbnb Superhosts

This seminar explores how reputation badges affect seller pricing in digital marketplaces. Combining a search-theoretic model with causal evidence from Airbnb, the study shows that badge visibility can intensify competition among sellers, leading to price discounting by those with badges. The findings suggest that reputation mechanisms, while intended to signal trust and quality, may also have unintended effects on market pricing dynamics.