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Dynamic Credit Risk Evaluation Method for E-Commerce Sellers Based on a Hybrid Artificial Intelligence Model

Author

Listed:
  • Yao-Zhi Xu

    (School of Information Technology and Management, University of International Business and Economics, Beijing 100029, China
    Alibaba Business School, Hangzhou Normal University, Hangzhou 311121, China)

  • Jian-Lin Zhang

    (Alibaba Business School, Hangzhou Normal University, Hangzhou 311121, China)

  • Ying Hua

    (School of Information Technology and Management, University of International Business and Economics, Beijing 100029, China)

  • Lin-Yue Wang

    (School of Information Technology and Management, University of International Business and Economics, Beijing 100029, China)

Abstract

Credit risk evaluation is important for e-commerce platforms, due to the uncertainty and transaction risk associated with buyers and sellers. Moreover, it is the key ingredient for the development of the e-commerce ecosystem and sustainability of the financial market. The main objective of this paper is to develop an effective and user-friendly system for seller credit risk evaluation. Three hybrid artificial intelligent models, including (1) decision tree—artificial neural network (ANN), (2) decision tree—logistic regression, and (3) decision tree—dynamic Bayesian network have been investigated. The models were trained using sellers credit cases from Taobao, which has 609 cases, and each case had 23 categorical and numerical attributes. The results suggest that the combination of decision tree—ANN provides the highest accuracy, which can promote healthy and fast transactions between buyers and sellers on the platforms. This model is regarded as a powerful tool that allows us to build an advanced credit risk evaluation system, and meet the requirements of the platform transaction mode to be dynamic and self-learning—which will ultimately contribute to the sustainable development of the e-commerce ecosystem. The empirical results can serve as a reference for e-commerce platforms promoting an optimum credit risk evaluation model to improve e-commerce transaction environment and for buyers and investors making decisions.

Suggested Citation

  • Yao-Zhi Xu & Jian-Lin Zhang & Ying Hua & Lin-Yue Wang, 2019. "Dynamic Credit Risk Evaluation Method for E-Commerce Sellers Based on a Hybrid Artificial Intelligence Model," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5521-:d:273872
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    References listed on IDEAS

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    2. Qingsong Xing & Tong Ren & Fumin Deng, 2023. "Analysis of the Transaction Behavior of Live Broadcasters with Goods Based on the Multi-Stage Game under Dynamic Credit Index," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    3. Jan Niederreiter, 2023. "Broadening Economics in the Era of Artificial Intelligence and Experimental Evidence," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 265-294, March.
    4. Kun Xu & Shuang Li & Jiao Liu & Cheng Lu & Guangzhe Xue & Zhengquan Xu & Chao He, 2022. "Evaluation Cloud Model of Spontaneous Combustion Fire Risk in Coal Mines by Fusing Interval Gray Number and DEMATEL," Sustainability, MDPI, vol. 14(23), pages 1-13, November.
    5. Xiangzhou Chen & Zhi Long, 2023. "E-Commerce Enterprises Financial Risk Prediction Based on FA-PSO-LSTM Neural Network Deep Learning Model," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    6. Nosratabadi, Saeed & Mosavi, Amir & Duan, Puhong & Ghamisi, Pedram & Filip, Ferdinand & Band, Shahab S. & Reuter, Uwe & Gama, Joao & Gandomi, Amir H., 2020. "Data science in economics: comprehensive review of advanced machine learning and deep learning methods," MetaArXiv haf2v, Center for Open Science.
    7. Nosratabadi, Saeed & Mosavi, Amir & Duan, Puhong & Ghamisi, Pedram & Filip, Ferdinand & Band, Shahab S. & Reuter, Uwe & Gama, Joao & Gandomi, Amir H., 2020. "Data science in economics: comprehensive review of advanced machine learning and deep learning methods," SocArXiv 9vdwf, Center for Open Science.
    8. Nosratabadi, Saeed & Mosavi, Amir & Duan, Puhong & Ghamisi, Pedram & Filip, Ferdinand & Band, Shahab S. & Reuter, Uwe & Gama, Joao & Gandomi, Amir H., 2020. "Data science in economics: comprehensive review of advanced machine learning and deep learning methods," OSF Preprints yc6e2, Center for Open Science.
    9. Nosratabadi, Saeed & Mosavi, Amir & Duan, Puhong & Ghamisi, Pedram & Filip, Ferdinand & Band, Shahab S. & Reuter, Uwe & Gama, Joao & Gandomi, Amir H., 2020. "Data science in economics: comprehensive review of advanced machine learning and deep learning methods," EdArXiv 5dwrt, Center for Open Science.
    10. Nosratabadi, Saeed & Mosavi, Amir & Duan, Puhong & Ghamisi, Pedram & Filip, Ferdinand & Band, Shahab S. & Reuter, Uwe & Gama, Joao & Gandomi, Amir H., 2020. "Data science in economics: comprehensive review of advanced machine learning and deep learning methods," LawArXiv kczj5, Center for Open Science.
    11. Saeed Nosratabadi & Amirhosein Mosavi & Puhong Duan & Pedram Ghamisi & Ferdinand Filip & Shahab S. Band & Uwe Reuter & Joao Gama & Amir H. Gandomi, 2020. "Data Science in Economics: Comprehensive Review of Advanced Machine Learning and Deep Learning Methods," Mathematics, MDPI, vol. 8(10), pages 1-25, October.
    12. Nosratabadi, Saeed & Mosavi, Amir & Duan, Puhong & Ghamisi, Pedram & Filip, Ferdinand & Band, Shahab S. & Reuter, Uwe & Gama, Joao & Gandomi, Amir H., 2020. "Data science in economics: comprehensive review of advanced machine learning and deep learning methods," Thesis Commons auyvc, Center for Open Science.

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