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Trust among strangers in internet transactions: Empirical analysis of eBay' s reputation system
Abstract
One of the earliest and best known Internet reputation systems is run by eBay, which gathers comments from buyers and sellers about each other after each transaction. Examination of a large data set from 1999 reveals several interesting features. First, despite incentives to free ride, feedback was provided more than half the time. Second, well beyond reasonable expectation, it was almost always positive. Third, reputation profiles were predictive of future performance, though eBay's net feedback statistic is far from the best predictor available. Fourth, there was a high correlation between buyer and seller feedback, suggesting that the players reciprocate and retaliate.
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“Resnick and Zeckhauser (Resnick and Zeckhauser, 2002) give a functional definition of a reputation system, as it must: (1) provide information that allows peers to distinguish between trustworthy and non-trustworthy peers, (2) encourage peers to be trustworthy, and (3) discourage participation from those who are not.”
Metadata
- Authors
- Resnick, P., & Zeckhauser, R.
- Venue
- Advances in Applied Microeconomics
- Publisher
- Emerald (MCB UP )
- Published
- 2004-05-19
- Pages
- 127-157
- ISSN
- 0278-0984 (ISSN-L)
- OpenAlex
- W2090513801
- Cited by
- 1,804
- References
- 3
- FWCI
- 293.46
- Type
- book chapter
- Language
- en
- Open access
- closed
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