Presenter: Assistant Professor of Management: Ozgecan Kocak,

Affiliation: Sabanci University

Title: Market Community as Market Mechanism

Abstract
Case studies and ethnographies of markets often observe the existence of a `market community'. Some researchers argue that communities facilitate exchange, much like relational networks do. This paper asks whether market communities have an effect on market outcomes independently of relational structures. Accordingly, it investigates whether four features often associated with market communities (structural boundedness, common language, social interaction amongst market participants, and a collective identity) increase the likelihood of successful exchanges independently of the effects of client networks and reputational information. It also asks if communal features have a greater impact on market outcomes under conditions of value uncertainty, and whether market participants' relational resources moderate the benefits they get from communal resources. Comparative analysis of auction markets on eBay show that structural boundedness and a more widely shared language for talking about goods increases the odds of auctions ending with a sale, in addition to the positive effects of bigger client networks. Sellers with lower reputation scores and smaller client networks benefit more from the existence of a common language.