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Trust and Reputation Building in E-Commerce

Author

Listed:
  • Claudia Keser
Abstract
Transactions on online markets require a great deal of trust among anonymous trading partners. To mitigate some of the risks involved in anonymous transactions, several online market sites have implemented reputation management mechanisms that differ in structure and probably functionality. In a series of experiments, this study examines the impact of two simple reputation management mechanisms on the evolution of trust and trustworthiness in a repeated trust game among strangers. Les transactions par Internet exigent une confiance considérable entre les intervenants anonymes. Pour minimiser les risques associés à des opérations anonymes, les responsables de plusieurs marchés en ligne ont mis en place des mécanismes de gestion de réputation différant en structure et fonctionnalité. Dans une série d'expériences, cette étude évalue l'impact de deux mécanismes relativement simples sur la confiance et la coopération dans un jeu de confiance répété entre étrangers.

Suggested Citation

  • Claudia Keser, 2002. "Trust and Reputation Building in E-Commerce," CIRANO Working Papers 2002s-75, CIRANO.
    • Handle: RePEc:cir:cirwor:2002s-75
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    File URL: https://cirano.qc.ca/files/publications/2002s-75.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sloof, Randolph & Sonnemans, Joep, 2011. "The interaction between explicit and relational incentives: An experiment," Games and Economic Behavior, Elsevier, vol. 73(2), pages 573-594.
    2. Engelmann, Dirk & Fischbacher, Urs, 2009. "Indirect reciprocity and strategic reputation building in an experimental helping game," Games and Economic Behavior, Elsevier, vol. 67(2), pages 399-407, November.
    3. Christiane Bozoyan & Sonja Vogt, 2016. "The Impact of Third-Party Information on Trust: Valence, Source, and Reliability," PLOS ONE, Public Library of Science, vol. 11(2), pages 1-18, February.
    4. Yannick Gabuthy, 2004. "Online Dispute Resolution and Bargaining," European Journal of Law and Economics, Springer, vol. 17(3), pages 353-371, May.
    5. Dulleck, Uwe & Howell, Nicola J. & Koessler, Ann-Kathrin & Mason, Rosalind F., 2018. "Insights into the Impact of Bankruptcy's Public Record on Entrepreneurial Activity: Evidence from Economic Experiments," EconStor Preprints 180667, ZBW - Leibniz Information Centre for Economics.
    6. Steffen Huck & Gabriele K. Lünser & Jean-Robert Tyran, 2016. "Price competition and reputation in markets for experience goods: an experimental study," RAND Journal of Economics, RAND Corporation, vol. 47(1), pages 99-117, February.
    7. Engle-Warnick, Jim & Slonim, Robert L., 2004. "The evolution of strategies in a repeated trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 553-573, December.
    8. Huck, Steffen & Lünser, Gabriele K. & Tyran, Jean-Robert, 2012. "Competition fosters trust," Games and Economic Behavior, Elsevier, vol. 76(1), pages 195-209.
    9. Gary E. Bolton & Elena Katok & Axel Ockenfels, 2004. "How Effective Are Electronic Reputation Mechanisms? An Experimental Investigation," Management Science, INFORMS, vol. 50(11), pages 1587-1602, November.
    10. Gabuthy, Yannick & Jacquemet, Nicolas & Marchand, Nadège, 2008. "Does resorting to online dispute resolution promote agreements? Experimental evidence," European Economic Review, Elsevier, vol. 52(2), pages 259-282, February.
    11. Dimitri Dubois & Marc Willinger, 2007. "The role of players’ identification in the population on the trusting and the trustworthy behavior an experimental investigation," Working Papers 07-06, LAMETA, Universtiy of Montpellier, revised Jun 2007.
    12. Roman Hoffmann & Bernhard Kittel & Mattias Larsen, 2021. "Information exchange in laboratory markets: competition, transfer costs, and the emergence of reputation," Experimental Economics, Springer;Economic Science Association, vol. 24(1), pages 118-142, March.
    13. Chen, Josie I & Kamei, Kenju, 2014. "Expressing Emotion and Fairness Crowding-out in an Ultimatum Game with Incomplete Information," MPRA Paper 54405, University Library of Munich, Germany.
    14. Möllers, Claudia, 2016. "Reputation and foreclosure with vertical integration: Experimental evidence," DICE Discussion Papers 232, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    15. Chrysanthos Dellarocas, 2003. "The Digitization of Word of Mouth: Promise and Challenges of Online Feedback Mechanisms," Management Science, INFORMS, vol. 49(10), pages 1407-1424, October.
    16. Ewa Zawojska, 2014. "The role of dynamics for trust development. An experimental study," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 38.
    17. Axel Ockenfels, 2002. "Reputationsmechanismen auf Internet-Marktplattformen - Theorie und Empirie -," Papers on Strategic Interaction 2002-46, Max Planck Institute of Economics, Strategic Interaction Group.
    18. Tyran, Jean-Robert & Huck, Steffen & Ruchala, Gabriele K., 2007. "Pricing and Trust," CEPR Discussion Papers 6135, C.E.P.R. Discussion Papers.
    19. Carsten Schmidt & Tobias Uske, 2004. "Reputationsmechanismen für Informationsgüter auf Internet-Meinungsportalen," Papers on Strategic Interaction 2004-13, Max Planck Institute of Economics, Strategic Interaction Group.

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    More about this item

    Keywords

    Trust; Reputation; Experimental Economics; E-commerce; Mondialisation; commerce international; temps de travail; intégration économique;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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