Promotion of Cooperative Behavior in C2C market: Effect of Reputation Management System

Proc. of The Third International Workshop on Agent-based Approaches in Economic and Social Complex Systems pp.97-104,2004.

Yamamoto, H., K., Ishida and T., Ohta

Abstract:

We model an online consumer-to-consumer (C2C) market by employing the prisoner's dilemma. To discuss the characteristics of goods traded on a C2C market, we define temptation and contribution indexes based on the payoff matrix of the game. According to the results of the simulation with the model, we find that a positive reputation management system can promote cooperative behavior in online C2C markets. Moreover, we also find that such a system is especially effective for an online C2C market where expensive physical goods are traded, whereas a negative reputation management system is effective for an online C2C market where information goods are traded.

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