Temptation and contribution in c2c transactions: implications for designing reputation management systems

Authors:
Hitoshi Yamamoto;Kazunari Ishida;Toshizumi Ohta
Affiliations:
Faculty of Business Administration, Rissho University, Tokyo, Japan;Faculty of International Agricultural and Food Studies, Tokyo University of Agriculture, Tokyo, Japan;The Graduate School of Information Systems, University of Electro-Communications, Tokyo, Japan
Venue:
Trusting Agents for Trusting Electronic Societies
Year:
2005

Citing 3
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Abstract

A reputation management system can promote trust in transactions in an online consumer-to-consumer (C2C) market. We model a C2C market by employing an agent-based approach. To discuss the characteristics of goods traded on the market, we define temptation and contribution indexes based on the payoff matrix of a game. According to the results of a simulation conducted with the model, we find that a positive reputation management system can promote cooperative behavior in online C2C markets. Moreover, we also find that such a system is especially effective for an online C2C market where expensive physical goods are traded, whereas a negative reputation management system is effective for an online C2C market where information goods are traded.