IDEAS home Printed from https://ideas.repec.org/a/vrs/gfkmir/v12y2020i2p34-39n6.html
   My bibliography  Save this article

Tit for Tat? The Difficulty of Designing Two-Sided Reputation Systems

Author

Listed:
  • Holtz David

    (PhD Candidate, MIT Sloan School of Management, Cambridge, MA, USA)

  • Fradkin Andrey

    (Assistant Professor of Marketing, Boston University Questrom School of Business, Boston, MA, USA)

Abstract

In a two-sided reputation system, it is in the interest of both buyers and sellers to be a good transaction partner. What sounds wonderful in theory is unfortunately not so easy to implement in reality. Reputation systems can have flaws due to factors such as reciprocity and retaliation, selective reviewing, and reputation inflation. These flaws cause the ratings collected on the platform to diverge from the actual experiences that marketplace participants are having. When reputation systems are not thoughtfully designed, it can be hard to distinguish between the “high quality” and “low quality” interactions. This makes it difficult to identify and remove bad actors and increases the chances of a “bad match”. Innovations in reputation system design, such as simultaneous reveal of information, review incentives, and greater reliance on private feedback, are making it easier to implement two-sided systems while avoiding the common pitfalls.

Suggested Citation

  • Holtz David & Fradkin Andrey, 2020. "Tit for Tat? The Difficulty of Designing Two-Sided Reputation Systems," NIM Marketing Intelligence Review, Sciendo, vol. 12(2), pages 34-39, November.
    • Handle: RePEc:vrs:gfkmir:v:12:y:2020:i:2:p:34-39:n:6
    DOI: 10.2478/nimmir-2020-0015
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/nimmir-2020-0015
    Download Restriction: no
    File URL: https://libkey.io/10.2478/nimmir-2020-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:gfkmir:v:12:y:2020:i:2:p:34-39:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.