natural experiment

A Rising Tide that Lifts All Boats: The Effects of Collective Recognition Programs on E-Commerce Sellers and Regional Economic Development

Alibaba’s Taobao platform launched a unique Taobao Town Certification (TTC) program in 2014 to recognize all sellers in a rural town collectively when their total sales volume exceeded a certain threshold. Unlike other platform certifications that often promote popular products or top-rated sellers individually, TTC is a unique “collective” strategy that endorses all sellers in a specific town “collectively.” In this paper, we examine the causal effects of this collective promotion program on sellers’ business performance and other social issues such as regional economic disparities and inclusive economic development.