Seller reputation and price gouging: evidence from the Covid-19 pandemic

We test the theory that seller reputation moderates the effect of demand shocks on a seller's propensity to price gouge. From mid January to mid March 2020, 3M masks were priced 2.72 times higher than Amazon sold them in 2019. However, the difference (in price ratios) between a post-Covid-19 entrant and an established seller is … Continue reading Seller reputation and price gouging: evidence from the Covid-19 pandemic