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The Retaliatory Feedback Problem: Evidence from eBay and a Proposed Solution
Abstract
Research has shown that reputation systems play an important part in online auctions. A higher reputation (or feedback) is correlated with higher prices paid for auctioned items. In order to guard their online reputation, many auction users refuse to provide negative feedback to others out of fear of retaliation. This paper outlines the retaliatory feedback problem. Data gathered from eBay is used to show that users are worried about the possibility of retaliation. Finally, a simple solution, involving the escrow of feedback scores is detailed.
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