Analyzing the Economic Efficiency of Ebay Like Online Reputation Reporting Mecha
Analyzing the Economic Efficiency of Ebay Like Online Reputation Reporting Mecha
Chrysanthos Dellarocas
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In such a setting, most buyers feel a moral obligation to conform to the prevailing social norms and be nice and relatively forgivmg to their trading partners. Our model uses a ratmg function r(S), which attempts to model the above empirically observed behavior. More specifically, we are assuming that buyers rate a transaction as "positive" if their actual utility from the transaction exceeds their expected utility (i. E. \fS>0). On the other hand, buyers only rate a transaction as negative if ...their actual utility falls short of their expected utility by more than a leniency factor A, that is, if S 0 r(5)= "-" ifS
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