| In the general commodity requests,reputation tends to promote information prolixity and request effectiveness.Still,in markets with information asymmetry,the function of reputation isn’t egregious and occasionally indeed ineffective.The reputation that this paper is concerned with refers simply to the accumulation of post-transaction evaluations by consumers,but the being literature has not studied this miracle in depth and has limited explicatory power for the reputation failure miracle.In this paper,we construct a sale model for successional decision making by cutting from the perspective of information cascade proposition.The core medium of the model is that consumers form their own transaction and evaluation opinions by observing the social signals transferred by their predecessors.We find that the propensity for loss aversion due to ownership of goods enhances consumers’ propensity for partner post evaluation,generating asymmetry related to the content of signals.This property increases the liability of reputation failure and reduces request effectiveness under conditions of inconsistent beliefs due to limited rationality.The paper also designs behavioral experiments consistent with the structure of the theoretical model to validate these findings and finds that the asymmetry in evaluations is significantly present as anticipated by the proposition and that the main cause is the propensity for loss aversion.Further confirmation by a belief extraction task revealed that consumers didn’t form accurate prospects of signals with low information value,leading to a significantly advanced probability of reverse information cascade(i.e.,reputation failure)in the experimental group than in the control group.The core donation of this paper is to incorporate behavioral factors similar as loss aversion and belief inconsistency into the analysis of social literacy proposition,which provides a useful complement to the related artificial organization proposition and social learning proposition,and provides a theoretical base for an in-depth understanding of reputation failure in information asymmetric markets and the provision of effective governance solutions. |
