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Reputational herding has been considered as a driving force behind economic and financial forecasts clustered around consensus values. Strategic coordination can consequently explain poor performances of prediction markets as resulting from the distinct incentives that forecasters face. While...
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We study the robustness of reputation management systems against distortions in rating behavior. In a laboratory trust … experiment with reputation management, we mimic a positive bias by exclusively offering the option to rate positively or to give …. This highlights the importance of negative ratings for the effectiveness of reputation systems. …
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