This paper introduces a model for analyzing marketplaces, such as eBay, which rely on binary reputation mechanisms for quality signaling and quality control. In our model sellers keep their actual quality private and choose what quality to advertise. The reputation mechanism is primarily used to...

Several properties of online interaction are challenging the accumulated wisdom of trading communities on how to produce and manage trust. Online reputation reporting systems have emerged as a promising trust management mechanism in such settings. The objective of this paper is to contribute to...

Reputation systems are emerging as an increasingly important component of online communities, helping elicit good behavior and cooperation among loosely connected and geographically dispersed economic agents. A deeper understanding of the factors that drive voluntary online feedback contribution...

This paper offers a systematic exploration of online feedback mechanism design issues in trading environments with opportunistic sellers, imperfect monitoring of a seller's effort level, and two possible transaction outcomes (corresponding to "high" and "low" quality respectively), one of which...

Online reputation mechanisms are emerging as a promising alternative to more established mechanisms for promoting trust and cooperative behavior, such as legally enforceable contracts. As information technology dramatically reduces the cost of accumulating, processing and disseminating consumer...