2018
DOI: 10.1371/journal.pone.0207172
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Maintaining vs. milking good reputation when customer feedback is inaccurate

Abstract: In Internet transactions, customers and service providers often interact once and anonymously. To prevent deceptive behavior a reputation system is particularly important to reduce information asymmetries about the quality of the offered product or service. In this study we examine the effectiveness of a reputation system to reduce information asymmetries when customers may make mistakes in judging the provided service quality. In our model, a service provider makes strategic quality choices and short-lived cu… Show more

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Cited by 1 publication
(1 citation statement)
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References 51 publications
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“…In online markets, consumers need to judge the seller’s ability to complete the purchase process successfully. Consumers evaluate the online information posted by others, which is a challenging task because participants can belong to any geographical location on the Internet [ 53 ]. They tend to perceive online reputation information as useful in influencing their judgments regarding products or services.…”
Section: Research Hypothesesmentioning
confidence: 99%
“…In online markets, consumers need to judge the seller’s ability to complete the purchase process successfully. Consumers evaluate the online information posted by others, which is a challenging task because participants can belong to any geographical location on the Internet [ 53 ]. They tend to perceive online reputation information as useful in influencing their judgments regarding products or services.…”
Section: Research Hypothesesmentioning
confidence: 99%