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A fair reputation system for use in online auctions

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  • Lin, Iuon-Chang
  • Wu, Hao-Ju
  • Li, Shu-Fen
  • Cheng, Chen-Yang

Abstract

Reputation systems become an essential component of e‐commerce because they can distinguish between honest and dishonest participants in the digital market. However, existing reputation systems are too simple to reflect accurately user trustworthiness. To improve existing schemes, this paper proposes a fair reputation system that can account for trading amount and rater reputation, consider the reputations of sellers and buyers, and provide incentives over time to users to be honest. The scheme is robust to errors and is easy to implement. The simulation results reveal that the proposed scheme outperformed existing schemes.

Suggested Citation

  • Lin, Iuon-Chang & Wu, Hao-Ju & Li, Shu-Fen & Cheng, Chen-Yang, 2015. "A fair reputation system for use in online auctions," Journal of Business Research, Elsevier, vol. 68(4), pages 878-882.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:4:p:878-882
    DOI: 10.1016/j.jbusres.2014.11.045
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    References listed on IDEAS

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    1. Weinberg, Bruce D. & Davis, Lenita, 2005. "Exploring the WOW in online-auction feedback," Journal of Business Research, Elsevier, vol. 58(11), pages 1609-1621, November.
    2. Sanjeev Dewan & Vernon Hsu, 2004. "Adverse Selection In Electronic Markets: Evidence From Online Stamp Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 52(4), pages 497-516, December.
    3. Daniel Houser & John Wooders, 2006. "Reputation in Auctions: Theory, and Evidence from eBay," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 353-369, June.
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    Cited by:

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    2. Xueke Du & Rui Dong & Wenli Li & Yibo Jia & Lirong Chen, 2019. "Online Reviews Matter: How Can Platforms Benefit from Online Reviews?," Sustainability, MDPI, vol. 11(22), pages 1-20, November.

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