The impact of the online marketplace on fraud: Evidence from Craigslist from its early adoption in 1995 to its wider expansion in 2006
DOI:
https://doi.org/10.61190/fsr.v33i4.4114Keywords:
Craigslist Adoption, online marketplace, fraud arrestsAbstract
This research addresses the influence of Craigslist’s adoption and presence on fraud arrests within metropolitan statistical areas (MSAs). Utilizing the consumer vulnerability framework (Hill & Sharma, 2020), the study used diverse data sources, including Craigslist entry data, the Uniform Crime Reporting (UCR) dataset, and the US Census Bureau Current Population Survey (CPS) data from 1995-2006. Employing differences-in-differences (DID) models, this study's primary findings indicate a reduction in fraud arrests, ranging from 11% to 23% following the introduction of Craigslist. While these results might appear counterintuitive, our findings suggest that online marketplace design and enforcement capacity may jointly influence fraud patterns.
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Copyright (c) 2025 Efthymia Antonoudi, Martin Seay, HanNa Lim, Elizabeth Kiss
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