Modeling Reputation Management System on Online C2C Market
- 574 Downloads
This paper discusses the effectiveness of sharing information concerning the reputations of buyers and sellers making online transactions in a consumer-to-consumer (C2C) market. We developed a computer simulation model that describes online transactions with a reputation management system that shares information concerning the reputations of consumers. The model takes an agent-based approach in which agents' actions are based on the iterated prisoner's dilemma. No model exists to analyze C2C markets even though there are many case studies concerning the effectiveness of sharing reputation information among participants in a market. The simulation results revealed that a positive reputation system can be more effective than a negative reputation system for an online transaction, even though the negative one can work for a traditional transaction. The result should be an important consideration when designing practical reputation management systems for online transactions.
Unable to display preview. Download preview PDF.
- Axelrod, R. (1997), The Complexity of Cooperation. Princeton University Press.Google Scholar
- Byrne, D. and D. Nelson (1965), “Attraction as a Linear Function of Proportion of Positive Reinforcenments,” Journal of Personality and Social Psychology, 1, 659–663.Google Scholar
- Hagel, J. and M. Singer (1999), Net Worth: Shaping Markets When Customers Make the Rules. Harvard Business School Press.Google Scholar
- Kamvar, S., M. Schlosser and H. Garcia-Molina (2003), “The EigenTrust Algorithm for Reputation Management in P2P Network,” in Proceedings of the Twelfth International World Wide Web Conference.Google Scholar
- Kollock, P. (1999), “The Production of Trust in Online Markets,” Advances in Group Processes, 16, 99–123.Google Scholar
- Milojicic, D.S., V. Kalogeraki, R. Lukose, K. Nagaraja, J. Pruyne, B. Richard, S. Rollins and Z. Xu (2002), “Peer-to-Peer Computing,” HP Labs 2002 Technical Reports (HPL-2002-57), as http://www.hpl.hp.com/ techreports/2002/.Google Scholar
- Shapiro, C. (1982), “Consumer Information, Product Quality, and Seller Reputation,” Bell Journal of Economics 13 (1), 20–35, Spring.Google Scholar
- Stoica, I., R. Morris, D. Karger, M. Kaashoek and H. Balakrishnan (2001), “Chord:AScalable Peer-to-Peer Lookup Service for Internet Application,” in Proceedings of the ACM SIGCOMM '01 Conference, pp. 149–160.Google Scholar
- Yamamoto, H., K. Ishida, and T. Ohta, (2003), “Managing Online Trade by Reputation Circulation: An Agent-Based Approach to the C2C Market,” in Proc. of The 7th World Multi-Conference on Systemics, Cybernetics and Informatics (SCI 2003), vol. 1, pp. 60–64.Google Scholar