The value of bad ratings: An experiment on the impact of distortions in reputation systems

Claudia Keser and Maximilian Späth

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2021, vol. 95, issue C

Abstract: We study the robustness of reputation management systems against positive and negative distortions. In a laboratory trust experiment with reputation management, we mimic a positive bias by exclusively offering the option to rate positively or to give no rating. As predicted by theoretical considerations, this bias leads to significantly less trust than a system that additionally offers a negative rating option. A system relying solely on negative ratings does not have such an adverse effect. This highlights the importance of negative ratings options for the effectiveness of reputation systems.

Keywords: Trust; Trustworthiness; Reputation System; Experiment (search for similar items in EconPapers)
JEL-codes: C73 C91 L14 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:95:y:2021:i:c:s2214804321001221

DOI: 10.1016/j.socec.2021.101782

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