Modeling Reputation Management System on Online C2C Market

  • Hitoshi Yamamoto
  • Kazunari Ishida
  • Toshizumi Ohta


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.

reputation management system C2C market e-commerce online market agent-based approach iterated prisoner's Dilemma 


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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Hitoshi Yamamoto
    • 1
  • Kazunari Ishida
    • 2
  • Toshizumi Ohta
    • 3
  1. 1.The Graduate School of Information SystemsUniversity of Electro-CommunicationsTokyoJapan
  2. 2.The Faculty of International Agriculture and Food StudiesTokyo University of AgricultureTokyoJapan
  3. 3.The Graduate School of Information SystemsUniversity of Electro-CommunicationsTokyoJapan

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