Relating Reputation and Money in Online Markets

  • Authors:
  • Ashwin Swaminathan;Renan G. Cattelan;Ydo Wexler;Cherian V. Mathew;Darko Kirovski

  • Affiliations:
  • Qualcomm Corporate R & D;Federal University of Uberlândia;DRW Trading;Microsoft Corporation;Microsoft Corporation

  • Venue:
  • ACM Transactions on the Web (TWEB)
  • Year:
  • 2010

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Abstract

Reputation in online economic systems is typically quantified using counters that specify positive and negative feedback from past transactions and/or some form of transaction network analysis that aims to quantify the likelihood that a network user will commit a fraudulent transaction. These approaches can be deceiving to honest users from numerous perspectives. We take a radically different approach with the goal of guaranteeing to a buyer that a fraudulent seller cannot disappear from the system with profit following a set of fabricated transactions that total a certain monetary limit. Even in the case of stolen identity, such an adversary cannot produce illegal profit unless a buyer decides to pay over the suggested limit.