Temptation and contribution in C2C transactions: Implications for designing reputation management systems

H Yamamoto, K Ishida, T Ohta - … Societies: Theory and Applications in HCI …, 2005 - Springer
H Yamamoto, K Ishida, T Ohta
Trusting Agents for Trusting Electronic Societies: Theory and Applications in …, 2005Springer
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 …
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.
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