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Engineering Trust - Reciprocity in the Production of Reputation Information

  • 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)

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.

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File URL: http://research.economics.unsw.edu.au/RePEc/papers/2009-02.pdf
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Paper provided by School of Economics, The University of New South Wales in its series Discussion Papers with number 2009-02.

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Length: 41 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:swe:wpaper:2009-02
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