Designing Reputation (Feedback) Mechanisms
HANDBOOK OF PROCUREMENT, Nicola Dimitri, Gustavo Piga, Giancarlo Spagnolo, eds., Cambridge University Press, 2006
39 Pages Posted: 20 Apr 2006
Online "feedback mechanisms" - also known as "reputation systems" - have been implemented in the most important private e-markets, such as eBay, Yahoo!, Amazon to foster trust and cooperation among trading partners. In this paper we discuss the main issues relevant for the optimal design of such mechanisms, providing practical indications for public and private e-platforms.
Keywords: Procurement, reputation, feedback mechanisms
JEL Classification: H57, D44, L14, L86
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