Advertisement

Modeling Reputation Management System on Online C2C Market

  • Hitoshi Yamamoto
  • Kazunari Ishida
  • Toshizumi Ohta
Article

Abstract

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 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Axelrod, R. (1997), The Complexity of Cooperation. Princeton University Press.Google Scholar
  2. 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
  3. Hagel, J. and M. Singer (1999), Net Worth: Shaping Markets When Customers Make the Rules. Harvard Business School Press.Google Scholar
  4. 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
  5. Kollock, P. (1999), “The Production of Trust in Online Markets,” Advances in Group Processes, 16, 99–123.Google Scholar
  6. McDonald, C. and C. Slawson (2002), “Reputation in An Internet Auction Market,” Economic Inquiry, 40(4), 633–650.CrossRefGoogle Scholar
  7. 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
  8. Resnick, P., R. Zeckhauser, E. Friedman and K. Kuwabara (2000), “Reputation Systems,” Communications of the ACM, 43(12), 45–48.CrossRefGoogle Scholar
  9. Shapiro, C. (1982), “Consumer Information, Product Quality, and Seller Reputation,” Bell Journal of Economics 13 (1), 20–35, Spring.Google Scholar
  10. 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
  11. 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

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

Personalised recommendations