Contracting With Uncertain Level Of Trust

  title={Contracting With Uncertain Level Of Trust},
  author={Sviatoslav Braynov and Tuomas Sandholm},
  journal={Computational Intelligence},
The paper investigates the impact of trust on market efficiency and bilateral contracts. We prove that a market in which agents are trusted to the degree they deserve to be trusted is as efficient as a market with complete trustworthiness. In other words, complete trustworthiness is not a necessary condition for market efficiency. We prove that distrust could significantly reduce market efficiency, and we show how to solve the problem by using appropriately designed multiagent contracts. The… Expand
Monopolizing markets by exploiting trust
A trust exploitation scheme that monopolizes the market against greedy contractees who bid on all announced tasks is presented and it is shown that such market monopolization is not possible in the presence of a trusted, but non-exploiting, contractee. Expand
The relationship of trust, demand, and utility: Be more trustworthy, then i will buy more
The model proposed is one in which agent demands can be divided amongst suppliers with the division determined by trust, and demonstrates empirically that FIRE, Regret, Probabilistic Trust Models and a model due to Yu and Singh can be exploited such that a consumer agent will continue to interact with a malicious agent despite periodic contract defaults by the malicious agent. Expand
Infrastructure Contracts: Trust and Institutional Updating
This paper discusses trust and trust perceptions in infrastructure contracts and supporting institutions. We focus on perceptions of the trustworthiness of the government purchasers of infrastructureExpand
Trust-Based Contracting
While most work on forming contracts in supply chains have focused on pricing schemes, auction mechanisms and production scheduling strategies, little attention has been paid to establishing andExpand
Optimizing cost-sensitive trust-negotiation protocols
This paper formalizes an optimization problem, namely the minimum sensitivity cost problem, whose objective is to minimize the total sensitivity costs of the credentials and policies disclosed during trust negotiation and proposes algorithms to solve the problem efficiently. Expand
Combining Behavioral Experiments and Agent-based Social Simulation to Support Trust-aware Decision-making in Supply Chains
The results revealed that it is possible to infer trust relationships from behavioral experiments and historical based data, and use these relationships to influence the procurement, ordering and information sharing process. Expand
A Bargaining Model for a First-Time Interaction Under Asymmetric Beliefs of Supply Reliability
The Nash bargaining solution is derived and the role of using a down-payment or nondelivery penalty in the contract is discussed and the case of endogenous supply reliability is studied, which is a first-time interaction between a buyer and a supplier who is unreliable in delivery. Expand
Trust and control in the early phases of target cost contracts
Target cost contracts entail the use of open book accounting, giving the client full access to project costs. Since comprehensive cost control is expensive, other less costly control mechanisms mightExpand
Using Reputation Information on Internet-of-Services Markets
A modified Double Auction protocol fulfilling the deducted requirements is proposed, and simulation experiments show that the usage of this modified protocol leads to increased trustworthiness for the participants. Expand
Competitive 'Trust Contracting' And Transaction Cost Economy
Evolutionary and spiral acquisition are currently trends in use for acquisitions where the outcomes are uncertain. This paper looks beyond these processes to a concept emphasising trust andExpand


Trust as a commodity
Trust is central to all transactions and yet economists rarely discuss the notion. It is treated rather as background environment, present whenever called upon, a sort of ever-ready lubricant thatExpand
Analyzing the economic efficiency of eBay-like online reputation reporting mechanisms
This paper introduces a model for analyzing marketplaces, such as eBay, which rely on binary reputation mechanisms for quality signaling and quality control, and argues that this optimal rule depends on several system parameters, which are difficult to estimate from the information that marketplaces currently make available to their members. Expand
Financial transactions that are made in an environment of imperfect knowledge will always contain a degree of risk. When dealing with humans or human organ- isations the relative knowledge about theExpand
Defection-free exchange mechanisms for information goods
  • S. Matsubara, M. Yokoo
  • Business, Computer Science
  • Proceedings Fourth International Conference on MultiAgent Systems
  • 2000
This work has developed two kinds of exchange mechanisms that guarantee against defection from a contract and examines the lower bound of the entry fee for each and provides a calculation method that is able to obtain this value in linear time. Expand
Trust Revelation in Multiagent Interaction
We analyze untrustworthy interactions, that is, interactions in which a party may fail to carry out its obligations. Such interactions pose agents with the problem of how to estimate theExpand
Formalising Trust as a Computational Concept
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. Expand
Equilibrium Analysis of the Possibilities of Unenforced Exchange in Multiagent Systems
The paper presents a fast algorithm that will find a sequence of independent partial deliveries in a way that enables unenforced exchange if such a sequence exists, and shows that the unenforcing exchange scheme hinders unfair renegotiation. Expand
The Social Cost of Cheap Pseudonyms
We consider the problems of societal norms for cooperation and reputation when it is possible to obtain cheap pseudonyms, something that is becoming quite common in a wide variety of interactions onExpand
Evidence-Based Electronic Contract Performance Monitoring
One aspect of the development of e-market services for the facilitation of business-to-business electronic commerce concerns the provision of automated support for contract performance assessment.Expand
Trust management through reputation mechanisms
Two complementary reputation mechanisms are investigated which rely on collaborative rating and personalized evaluation of the various ratings assigned to each user which may have applicability in other types of electronic communities such as chatrooms, newsgroups, mailing lists, etc. Expand