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The Effect of Dishonest Sellers on E-commerce: An Agent-Based Modeling Approach

Author

Listed:
  • Yi-Chen Huang
  • Tak-Yu Cheng
  • Bin-Tzong Chie

Abstract

This paper studies dishonest sellers in the e-commerce market, specifically their impact on the market under different conditions. We consider the role of consumers’ social and individual learning and social network branches on the market. We rely on a quality uncertainty market model (Izquierdo et al., 2007) and a trust game model (Wierzbicki et al., 2014) to establish an agent-based model. Our approach considers the proportion of honest and dishonest sellers, the reputation of sellers, and the expectation of quality among consumers after purchasing the goods. The results of the study reveal that when dishonest sellers appear in a market with a high degree of quality uncertainty, there is a negative impact on the market, including a decline in consumer expected quality of products in the market, a decrease in commodity transaction volume and market price, and a decrease in seller income. The impact is more pronounced in markets with a higher proportion of dishonest sellers. JEL classification numbers: C15, C63, D21, B82, B83.

Suggested Citation

  • Yi-Chen Huang & Tak-Yu Cheng & Bin-Tzong Chie, 2022. "The Effect of Dishonest Sellers on E-commerce: An Agent-Based Modeling Approach," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 12(4), pages 1-5.
    • Handle: RePEc:spt:admaec:v:12:y:2022:i:4:f:12_4_5
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    References listed on IDEAS

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    1. Izquierdo, Segismundo S. & Izquierdo, Luis R., 2007. "The impact of quality uncertainty without asymmetric information on market efficiency," Journal of Business Research, Elsevier, vol. 60(8), pages 858-867, August.
    2. Adam Wierzbicki & Paulina Adamska & Katarzyna Abramczuk & Thanasis Papaioannou & Karl Aberer & Emilia Rejmund, 2014. "Studying Web Content Credibility by Social Simulation," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 17(3), pages 1-6.
    3. Granovetter, Mark & Soong, Roland, 1986. "Threshold models of interpersonal effects in consumer demand," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 83-99, March.
    4. Janssen, Marco A. & Jager, Wander, 2001. "Fashions, habits and changing preferences: Simulation of psychological factors affecting market dynamics," Journal of Economic Psychology, Elsevier, vol. 22(6), pages 745-772, December.
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    Keywords

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    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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