How Effective Are Electronic Reputation Mechanisms? An Experimental Investigation

Authors:
Gary E. Bolton;Elena Katok;Axel Ockenfels
Affiliations:
-;-;-
Venue:
Management Science
Year:
2004

Citing 0
Cited 39

The mechanics of trust: a framework for research and design

International Journal of Human-Computer Studies
Avoiding ballot stuffing in eBay-like reputation systems

Proceedings of the 2005 ACM SIGCOMM workshop on Economics of peer-to-peer systems
Research Note---How Often Should Reputation Mechanisms Update a Trader's Reputation Profile?

Information Systems Research
Indirect partner interaction in peer-to-peer networks: stimulating cooperation by means of structure

Proceedings of the 8th ACM conference on Electronic commerce
Effects of a reputation feedback system on an online consumer-to-consumer auction market

Decision Support Systems
Recommending trusted online auction sellers using social network analysis

Expert Systems with Applications: An International Journal
Online reputation systems: Design and strategic practices

Decision Support Systems
Trust in consumer-to-consumer electronic commerce

Information and Management
Using and fixing biased rating schemes

Communications of the ACM - Enterprise information integration: and other tools for merging data
Determinants of online merchant rating: Content analysis of consumer comments about Yahoo merchants

Decision Support Systems
Stylometric Identification in Electronic Markets: Scalability and Robustness

Journal of Management Information Systems
Does Competition Promote Trust and Trustworthiness in Online Trading? An Experimental Study

Journal of Management Information Systems
The influence of information sensitivity compensation on privacy concern and behavioral intention

ACM SIGMIS Database
On-line Reputation Systems: The Effects of Feedback Comments and Reactions on Building and Rebuilding Trust in On-line Auctions

International Journal of Electronic Commerce
Anchor Selection and Group Dynamics in Newsvendor Decisions---A Note

Decision Analysis
Revisiting feedback systems: Trust building in digital markets

Information and Management
Evolutionary cyber-psychology: Applying an evolutionary framework to Internet behavior

Computers in Human Behavior
Social interaction and continuance intention in online auctions: A social capital perspective

Decision Support Systems
Security challenges for reputation mechanisms using online social networks

Proceedings of the 2nd ACM workshop on Security and artificial intelligence
Understanding Perceived Gratifications for Mobile Content Sharing and Retrieval in a Game-Based Environment

AMT '09 Proceedings of the 5th International Conference on Active Media Technology
A probabilistic reputation model based on transaction ratings

Information Sciences: an International Journal
A multi-level selection model for the emergence of social norms

ECAL'07 Proceedings of the 9th European conference on Advances in artificial life
Reputation mechanisms in an exchange economy

Electronic Commerce Research and Applications
Drivers of B2B Software Purchase Decisions

Proceedings of the 2010 conference on Bridging the Socio-technical Gap in Decision Support Systems: Challenges for the Next Decade
The long tail or the short tail: The category-specific impact of eWOM on sales distribution

Decision Support Systems
Academic data collection in electronic environments: defining acceptable use of internet resources

MIS Quarterly
Internet exchanges for used goods: an empirical analysis of trade patterns and adverse selection1

MIS Quarterly
Reputation evaluation for choosing a trustworthy counterparty in C2C e-commerce

Electronic Commerce Research and Applications
To buy or not to buy: Influence of seller photos and reputation on buyer trust and purchase behavior

International Journal of Human-Computer Studies
Reputation and Uncertainty in Online Markets: An Experimental Study

Information Systems Research
Why trust seals don't work: a study of user perceptions and behavior

TRUST'12 Proceedings of the 5th international conference on Trust and Trustworthy Computing
The Ironic Effect of Source Identificationon the Perceived Credibility of Online Product Reviewers

Journal of Computer-Mediated Communication
Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending

Management Science
The multidimensional study of viral campaigns as branching processes

SocInfo'12 Proceedings of the 4th international conference on Social Informatics
A Social-Feedback Enriched Interface for Software Download

Journal of Organizational and End User Computing
Engineering Trust: Reciprocity in the Production of Reputation Information

Management Science
Can online trading survive bad-mouthing? An experimental investigation

Decision Support Systems
From blurry numbers to clear preferences: A mechanism to extract reputation in social networks

Expert Systems with Applications: An International Journal
What's different about social media networks? a framework and research agenda

MIS Quarterly

Quantified Score

Hi-index	0.01

Visualization

Abstract

Electronic reputation or "feedback" mechanisms aim to mitigate the moral hazard problems associated with exchange among strangers by providing the type of information available in more traditional close-knit groups, where members are frequently involved in one another's dealings. In this paper, we compare trading in a market with online feedback (as implemented by many Internet markets) to a market without feedback, as well as to a market in which the same people interact with one another repeatedly (partners market). We find that while the feedback mechanism induces quite a substantial improvement in transaction efficiency, it also exhibits a kind of public goods problem in that, unlike in the partners market, the benefits of trust and trustworthy behavior go to the whole community and are not completely internalized. We discuss the implications of this perspective for improving feedback systems.