Engineering Trust - Reciprocity in the Production of Reputation Information

42 Pages Posted: 9 Mar 2009

See all articles by Gary E. Bolton

Gary E. Bolton

Pennsylvania State University - Department of Supply Chain & Information Systems

Ben Greiner

Vienna University of Economics and Business

Axel Ockenfels

University of Cologne - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 8, 2009

Abstract

Reciprocal feedback distorts the production and content of reputation information, hampering trust and trade efficiency. Data from eBay and other sources combined with laboratory data provide a robust picture of how reciprocity can be guided by changes in the way feedback information flows through the system, leading to more accurate reputation information, more trust and more efficient trade.

Keywords: market design, reputation, trust, reciprocity, eBay

JEL Classification: C73, C9, D02, L14

Suggested Citation

Bolton, Gary Eugene and Greiner, Ben and Ockenfels, Axel, Engineering Trust - Reciprocity in the Production of Reputation Information (March 8, 2009). UNSW Australian School of Business Research Paper No. 2009 ECON 02, Available at SSRN: https://ssrn.com/abstract=1355583 or http://dx.doi.org/10.2139/ssrn.1355583

Gary Eugene Bolton

Pennsylvania State University - Department of Supply Chain & Information Systems ( email )

Dept. of Supply Chain & Information Systems
University Park, PA 16802-3306
United States
814-865-0611 (Phone)
814-863-2381 (Fax)

Ben Greiner (Contact Author)

Vienna University of Economics and Business

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Axel Ockenfels

University of Cologne - Department of Economics ( email )

Albertus Magnus Platz
Cologne 50923
Germany

HOME PAGE: http://ockenfels.uni-koeln.de/

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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