In December 2002, Paul Pavlou and David Gefen explored how online auction marketplaces use institutional trust to build buyer confidence, reduce risk, and increase transaction intentions. The study focused on three institutional mechanisms: buyer-driven certification, auction house escrows, and credit card guarantees. These mechanisms help buyers trust sellers in online environments where direct interaction is not possible. The research tested these mechanisms with 274 Amazon buyers, finding that institutional trust significantly influences buyer trust, satisfaction, and transaction intentions. The results support the hypothesis that institutional structures, such as certification and escrows, are crucial for building trust in online marketplaces. The study also highlights the importance of perceived risk and satisfaction in mediating the relationship between trust and transaction intentions. While credit card guarantees did not significantly increase trust, buyer-driven certification and auction house escrows were effective. The findings suggest that institutional trust is essential for effective online marketplaces, as it helps mitigate risks and facilitate transactions. The study also discusses the implications of these findings for future research and the development of trust-building mechanisms in online environments.In December 2002, Paul Pavlou and David Gefen explored how online auction marketplaces use institutional trust to build buyer confidence, reduce risk, and increase transaction intentions. The study focused on three institutional mechanisms: buyer-driven certification, auction house escrows, and credit card guarantees. These mechanisms help buyers trust sellers in online environments where direct interaction is not possible. The research tested these mechanisms with 274 Amazon buyers, finding that institutional trust significantly influences buyer trust, satisfaction, and transaction intentions. The results support the hypothesis that institutional structures, such as certification and escrows, are crucial for building trust in online marketplaces. The study also highlights the importance of perceived risk and satisfaction in mediating the relationship between trust and transaction intentions. While credit card guarantees did not significantly increase trust, buyer-driven certification and auction house escrows were effective. The findings suggest that institutional trust is essential for effective online marketplaces, as it helps mitigate risks and facilitate transactions. The study also discusses the implications of these findings for future research and the development of trust-building mechanisms in online environments.