Collaborative reputation mechanisms in electronic marketplaces
05 Jan 1999-Vol. 8, pp 8026-8026
TL;DR: This paper proposes two complementary reputation mechanisms that rely on collaborative ratings and personalized evaluation of the various ratings assigned to each user that have applicability in other types of electronic communities such as chatrooms, newsgroups, mailing lists, etc.
Abstract: The members of electronic communities are often unrelated to each other, they may have never met and have no information on each other's reputation. This kind of information is vital in electronic commerce interactions, where the potential counterpart's reputation can be a significant factor in the negotiation strategy. This paper proposes two complementary reputation mechanisms that rely on collaborative ratings and personalized evaluation of the various ratings assigned to each user. While these reputation mechanisms are developed in the context of electronic commerce, we believe that they may have applicability in other types of electronic communities such as chatrooms, newsgroups, mailing lists, etc.
Citations
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01 Mar 2007
TL;DR: Trust and reputation systems represent a significant trend in decision support for Internet mediated service provision as mentioned in this paper, where the basic idea is to let parties rate each other, for example after the completion of a transaction, and use the aggregated ratings about a given party to derive a trust or reputation score.
Abstract: Trust and reputation systems represent a significant trend in decision support for Internet mediated service provision. The basic idea is to let parties rate each other, for example after the completion of a transaction, and use the aggregated ratings about a given party to derive a trust or reputation score, which can assist other parties in deciding whether or not to transact with that party in the future. A natural side effect is that it also provides an incentive for good behaviour, and therefore tends to have a positive effect on market quality. Reputation systems can be called collaborative sanctioning systems to reflect their collaborative nature, and are related to collaborative filtering systems. Reputation systems are already being used in successful commercial online applications. There is also a rapidly growing literature around trust and reputation systems, but unfortunately this activity is not very coherent. The purpose of this article is to give an overview of existing and proposed systems that can be used to derive measures of trust and reputation for Internet transactions, to analyse the current trends and developments in this area, and to propose a research agenda for trust and reputation systems.
3,493 citations
TL;DR: Online feedback mechanisms harness the bidirectional communication capabilities of the Internet to engineer large-scale, word-of-mouth networks as discussed by the authors, which has potentially important implications for a wide range of management activities such as brand building, customer acquisition and retention, product development and quality assurance.
Abstract: Online feedback mechanisms harness the bidirectional communication capabilities of the Internet to engineer large-scale, word-of-mouth networks. Best known so far as a technology for building trust and fostering cooperation in online marketplaces, such as eBay, these mechanisms are poised to have a much wider impact on organizations. Their growing popularity has potentially important implications for a wide range of management activities such as brand building, customer acquisition and retention, product development, and quality assurance. This paper surveys our progress in understanding the new possibilities and challenges that these mechanisms represent. It discusses some important dimensions in which Internet-based feedback mechanisms differ from traditional word-of-mouth networks and surveys the most important issues related to their design, evaluation, and use. It provides an overview of relevant work in game theory and economics on the topic of reputation. It discusses how this body of work is being extended and combined with insights from computer science, management science, sociology, and psychology to take into consideration the special properties of online environments. Finally, it identifies opportunities that this new area presents for operations research/management science (OR/MS) research.
2,519 citations
31 Oct 2002
TL;DR: Examination of a large data set from 1999 reveals several interesting features, including a high correlation between buyer and seller feedback, suggesting that the players reciprocate and retaliate.
Abstract: One of the earliest and best known Internet reputation systems is run by eBay, which gathers comments from buyers and sellers about each other after each transaction. Examination of a large data set from 1999 reveals several interesting features. First, despite incentives to free ride, feedback was provided more than half the time. Second, well beyond reasonable expectation, it was almost always positive. Third, reputation profiles were predictive of future performance, though eBay's net feedback statistic is far from the best predictor available. Fourth, there was a high correlation between buyer and seller feedback, suggesting that the players reciprocate and retaliate.
1,948 citations
Proceedings Article•
01 Jan 2002TL;DR: A new reputation system based on using beta probability density functions to combine feedback and derive reputation ratings is described which is flexibility and simplicity as well as its foundation on the theory of statistics.
Abstract: Reputation systems can be used to foster good behaviour and to encourage adherence to contracts in e-commerce. Several reputation systems have been deployed in practical applications or proposed in the literature. This paper describes a new system called the beta reputation system which is based on using beta probability density functions to combine feedback and derive reputation ratings. The advantage of the beta reputation system is flexibility and simplicity as well as its foundation on the theory of statistics.
1,638 citations
07 Jan 2002
TL;DR: This paper first surveys existing literatures on trust, reputation and a related concept: reciprocity and proposes a computational model that can be implemented in a real system to consistently calculate agents' trust and reputation scores.
Abstract: Despite their many advantages, e-businesses lag behind brick and mortar businesses in several fundamental respects. This paper concerns one of these: relationships based on trust and reputation. Recent studies on simple reputation systems for e-Businesses such as eBay have pointed to the importance of such rating systems for deterring moral hazard and encouraging trusting interactions. However, despite numerous studies on trust and reputation systems, few have taken studies across disciplines to provide an integrated account of these concepts and their relationships. This paper first surveys existing literatures on trust, reputation and a related concept: reciprocity. Based on sociological and biological understandings of these concepts, a computational model is proposed. This model can be implemented in a real system to consistently calculate agents' trust and reputation scores.
1,020 citations
Cites background from "Collaborative reputation mechanisms..."
...As Friedman and Resnick (1998) have pointed out, an easily modified pseudonym system creates the incentive to misbehave without paying reputational consequences....
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References
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22 Oct 1994
TL;DR: GroupLens is a system for collaborative filtering of netnews, to help people find articles they will like in the huge stream of available articles, and protect their privacy by entering ratings under pseudonyms, without reducing the effectiveness of the score prediction.
Abstract: Collaborative filters help people make choices based on the opinions of other people. GroupLens is a system for collaborative filtering of netnews, to help people find articles they will like in the huge stream of available articles. News reader clients display predicted scores and make it easy for users to rate articles after they read them. Rating servers, called Better Bit Bureaus, gather and disseminate the ratings. The rating servers predict scores based on the heuristic that people who agreed in the past will probably agree again. Users can protect their privacy by entering ratings under pseudonyms, without reducing the effectiveness of the score prediction. The entire architecture is open: alternative software for news clients and Better Bit Bureaus can be developed independently and can interoperate with the components we have developed.
5,644 citations
"Collaborative reputation mechanisms..." refers methods in this paper
...Examples of collaborative filtering systems are HOMR [13], Firefly [13] and GroupLens [14]....
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01 May 1995
TL;DR: The implementation of a networked system called Ringo, which makes personalized recommendations for music albums and artists, and four different algorithms for making recommendations by using social information filtering were tested and compared.
Abstract: This paper describes a technique for making personalized recommendations from any type of database to a user based on similarities between the interest profile of that user and those of other users. In particular, we discuss the implementation of a networked system called Ringo, which makes personalized recommendations for music albums and artists. Ringo's database of users and artists grows dynamically as more people use the system and enter more information. Four different algorithms for making recommendations by using social information filtering were tested and compared. We present quantitative and qualitative results obtained from the use of Ringo by more than 2000 people.
3,237 citations
"Collaborative reputation mechanisms..." refers methods in this paper
...Examples of collaborative filtering systems are HOMR [13], Firefly [13] and GroupLens [14]....
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Dissertation•
01 Jan 1994
TL;DR: The thesis presents a testbed populated by simple trusting agents which substantiates the utility of the formalism and provides a step in the direction of a proper understanding and definition of human trust.
Abstract: Trust is a judgement of unquestionable utility — as humans we use it every day of our lives. However, trust has suffered from an imperfect understanding, a plethora of definitions, and informal use in the literature and in everyday life. It is common to say “I trust you,” but what does that mean? This thesis provides a clarification of trust. We present a formalism for trust which provides us with a tool for precise discussion. The formalism is implementable: it can be embedded in an artificial agent, enabling the agent to make trust-based decisions. Its applicability in the domain of Distributed Artificial Intelligence (DAI) is raised. The thesis presents a testbed populated by simple trusting agents which substantiates the utility of the formalism. The formalism provides a step in the direction of a proper understanding and definition of human trust. A contribution of the thesis is its detailed exploration of the possibilities of future work in the area.
1,660 citations
"Collaborative reputation mechanisms..." refers background in this paper
...Finally we have to consider the effect of the memory of our system [4]....
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...Reputation is usually defined as the amount of trust inspired by the particular person in a specific setting or domain of interest [4]....
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Book•
01 Jan 1978
917 citations
"Collaborative reputation mechanisms..." refers methods in this paper
...This approach is similar to the method used in the Elo [15] and the Glicko [16] system for pairwise ratings....
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Proceedings Article•
01 Jan 1997TL;DR: How Kasbah works is described, a system where users create autonomous agents to buy and sell goods on their behalf and the implementation of a simple proof-of-concept prototype is discussed.
Abstract: While there are many Web services which help users find things to buy, we know of none which actually try to automate the process of buying and selling. Kasbah is a system where users create autonomous agents to buy and sell goods on their behalf. In this paper, we describe how Kasbah works. We also discuss the implementation of a simple proof-of-concept prototype.
901 citations
"Collaborative reputation mechanisms..." refers background in this paper
...Each agent's goal is to make the "best deal" possible, subject to a set of user-specified constraints, such as a desired price, a highest (or lowest) acceptable price, and a date to complete the transaction [1]....
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...The latest release of Kasbah [1] features a Better Business Bureau service that implements the reputation mechanisms we describe below....
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...Consumer to consumer electronic transaction systems like Kasbah [1], eBay [2] and "ONSALE Exchange Auction Classifieds" [3] create online market places that bring together users unknown to each other....
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