Reputation , Trust , and Rebates : How Online Auction Markets can Improve their Feedback Mechanisms

@inproceedings{Li2006ReputationT,
  title={Reputation , Trust , and Rebates : How Online Auction Markets can Improve their Feedback Mechanisms},
  author={Lingfang Li},
  year={2006}
}
Trust and trustworthiness are crucial to the survival of online markets, and reputation systems that rely on feedback from traders help sustain trust. However, in current online auction markets only half of the buyers leave feedback after transactions, and nearly all of it is positive. In this paper, I propose a mechanism whereby sellers can provide rebates to buyers contingent on buyers provision of reports. Using a game theoretical model, I show how the rebate incentive mechanism can increase… CONTINUE READING