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Measuring the Demand Effects of Formal and Informal Communication : Evidence from Online Markets for Illicit Drugs

Luis Armona

arXiv 24 Feb 2018 · Statistics — Applications · 1 citations (OpenAlex)

arXiv:1802.08778 · PDF · DOI · OpenAlex · Extracted main text

Abstract

I present evidence that communication between marketplace participants is an important influence on market demand. I find that consumer demand is approximately equally influenced by communication on both formal and informal networks- namely, product reviews and community forums. In addition, I find empirical evidence of a vendor's ability to commit to disclosure dampening the effect of communication on demand. I also find that product demand is more responsive to average customer sentiment as the number of messages grows, as may be expected in a Bayesian updating framework.

Citation extraction

15
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18
in-text mentions
15
distinct cited
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13,671
main-text words

appendix boundary found by appendix_command · 92% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1A Colin Cameron, Pravin K Trivedi, et al (2013) Count panel data0.64422100%
2Gwern Branwen & Nicolas Christin & David Décary-Hétu & Rasmus Munksg… (2015) Dark net market archives, 2011-2015, 20150.51121100%
3Matt Taddy (2013) Multinomial inverse regression for text analysis0.51121100%
4Steven Bird, Ewan Klein, and Edward Loper (2009) Natural language processing with Python: analyzing text with the natural language toolkit0.40511100%
5Nicolas Christin (2013) Traveling the silk road: A measurement analysis of a large anonymous online marketplace0.40511100%
6United States Congress (1970) Comprehensive drug abuse prevention and control act of 1970, public law 91-513 , 91st congress0.40511100%
7Jakob Johan Demant and Esben Houborg (2016) Personal use, social supply or redistribution? cryptomarket demand on silk road 2 and agora0.40511100%
8Roger Dingledine, Nick Mathewson, and Paul Syverson (2004) Tor: The second-generation onion router0.40511100%
9Nicky Woolf (2015) Bitcoin 'exit scam': deep-web market operators disappear with $12m0.40511100%
10Joseph Farrell and Matthew Rabin (1996) Cheap talk0.40511100%

Showing the top 10 of 15 scored citations.