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Design of Reputation Systems in Online Auction Marketplaces: A Comparative Market Study

Design of Reputation Systems in Online Auction Marketplaces: A Comparative Market Study
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Author(s): Kai Riemer (University of Münster, Germany) and Dorothee Korn (University of Münster, Germany)
Copyright: 2007
Pages: 4
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch027
ISBN13: 9781599049298
EISBN13: 9781466665378

Abstract

Reputation systems aim at facilitating the emergence of trust between transaction partners in online auction marketplaces. In this paper the reputation systems of the six largest online auction marketplaces in the Ger-man market are evaluated. To this end, a catalogue of criteria regarding design options for reputation sys-tems was developed. Since eBay is widely criticized for shortcomings of its reputation system, it was assumed that its five competitors have a vital interest in distinguishing themselves in this important aspect of auction platform design. The results of the empirical analysis however point to the contrary. Reputation systems largely show a dominant design with only marginal deviations in detail. The reasons for this, the actual dif-ferences between the reputation systems, as well as general limitations of reputation systems are discussed.

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