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Engineering Trust - Reciprocity in the Production of Reputation Information

Author

Listed:
  • Gary E. Bolton

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

  • Ben Greiner

    (School of Economics, The University of New South Wales)

  • Axel Ockenfels

    (Department of Economics, University of Cologne)

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.

Suggested Citation

  • Gary E. Bolton & Ben Greiner & Axel Ockenfels, 2009. "Engineering Trust - Reciprocity in the Production of Reputation Information," Discussion Papers 2009-02, School of Economics, The University of New South Wales.
  • Handle: RePEc:swe:wpaper:2009-02
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2009-02.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    market design; reputation; trust; reciprocity; eBay;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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