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marketplaces

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    Incentive Design Entry #0389

    The reason a rating system inflates over time

    Nobody in the system gains from a low score. When every participant benefits from inflation, the scale compresses upward until it stops distinguishing anything.

    Adept
    The hidden part #0389

    A rating scale does not collapse because reviewers are kind. It collapses because nobody in it profits from a low number.

    Open file
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    Platform Mechanics Entry #0297

    The reason a marketplace competes with its own sellers

    The platform sees demand before anyone else does. That view is an asset, and an asset that identifies proven products invites entry.

    Adept
    The hidden part #0297

    Operating a market and competing in it are different roles held by one party. The information advantage is structural, so the withdrawal is too.

    Open file
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    Choice Design Entry #0243

    The reason a default sort order shapes the market

    Position determines attention, attention determines sales, and sales determine future position. The first sort order is an allocation of demand, not a description of it.

    Novice
    The hidden part #0243

    A ranking is not a report on demand. It is an allocation of demand, and next cycle it will cite itself as evidence.

    Open file