Optimizing an Incentives’ Mechanism for Truthful Feedback in Virtual Communities

  • Thanasis G. Papaioannou
  • George D. Stamoulis
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4118)


We analyze a mechanism that provides strong incentives for the submission of truthful feedback in virtual communities where services are exchanged on a peer-to-peer basis. Lying peers are punished with a severity that is exponential to their frequency of lying. We had first introduced and evaluated experimentally the mechanism in [1]. In this paper, we develop a Markov-chain model of the mechanism. Based on this, we prove that, when the mechanism is employed, the system evolves to a beneficial steady-state operation even in the case of a dynamically renewed population. Furthermore, we develop a procedure for the efficient selection of the parameters of the mechanism for any peer-to-peer system; this procedure is based on ergodic arguments. Simulation experiments reveal that the procedure is indeed accurate, as well as effective regarding the incentives provided to participants for submitting truthful feedback.


Time Slot Punishment Parameter Virtual Community Strategic Vote Feedback Message 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Papaioannou, T.G., Stamoulis, G.D.: An Incentives’ Mechanism Promoting Truthful Feedback in Peer-to-Peer Systems. In: Proceedings of the 5th IEEE/ACM International Symposium in Cluster Computing and the Grid, Cardiff, UK (2005)Google Scholar
  2. 2.
    Papaioannou, T.G., Stamoulis, G.D.: Effective Use of Reputation in Peer-to-Peer Environments. In: Proceedings of the 4th IEEE/ACM International Symposium in Cluster Computing and the Grid, Chicago, Illinois, USA (2004)Google Scholar
  3. 3.
    Dellarocas, C.: Immunizing Online Reputation Reporting Systems Against Unfair Ratings and Discriminatory Behavior. In: Proceedings of the 2nd ACM Conference on Electronic Commerce, Minneapolis, MN, USA (2000)Google Scholar
  4. 4.
    Schillo, M., Funk, P., Rovatsos, M.: Using Trust for Detecting Deceitful Agents in Artificial Societies. Applied Artificial Intelligence 14, 825–848 (2000)CrossRefGoogle Scholar
  5. 5.
    Damiani, E., di Vimercati, S.D.C., Paraboschi, S., Samarati, P.: Managing and Sharing Servents’ Reputations in P2P Systems. IEEE Transactions on Knowledge and Data Engineering 15, 840–854 (2003)CrossRefGoogle Scholar
  6. 6.
    Yu, B., Singh, M.P.: Distributed Reputation Management for Electronic Commerce. Computational Intelligence 18, 535–549 (2002)CrossRefMathSciNetGoogle Scholar
  7. 7.
    Aberer, K., Despotovic, Z.: Managing Trust in a Peer-to-Peer Information System. In: Proceedings of the 10th International Conference on Information and Knowledge Management, New York, NY USA (2001)Google Scholar
  8. 8.
    Jurca, R., Faltings, B.: Eliciting Truthful Feedback for Binary Reputation Mechanisms. In: Proceedings of IEEE/WIC/ACM International Conference on Web Intelligence, Beijing, China (2004)Google Scholar
  9. 9.
    Antoniadis, P., Courcoubetis, C., Mason, R., Papaioannou, T.G., Stamoulis, G.D., Weber, R.: Results of peer-to-peer market models, Project IST MMAPPS: Deliverable 8 (2004), Available at: http://www.tik.ee.ethz.ch/~mmapps/www.mmapps.org/results/main.html
  10. 10.
    Feldman, M., Papadimitriou, C., Chuang, J., Stoica, I.: Free-riding and white-washing in peer-to-peer systems. In: Proceedings of the ACM SIGCOMM Workshop on Practice and Theory of Incentives in Networked Systems, Portland, Oregon, USA (2004)Google Scholar
  11. 11.
    Fowler, J.H.: Altruistic Punishment and the Origin of Cooperation. Proceedings of the National Academy of Sciences of the United States of America 102, 7047–7049 (2005)CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Thanasis G. Papaioannou
    • 1
  • George D. Stamoulis
    • 1
  1. 1.Department of InformaticsAthens University of Economics and Business (AUEB)AthensGreece

Personalised recommendations