Analyzing the Economic Efficiency of Ebay Like Online Reputation Reporting Mecha

Cover 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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