Reputation Mechanism: eBay Example
Self-Interest, Reciprocity, and Participation in Online Reputation Systems, Chrysanthos Dellarocas, Ming Fan, Charles A. Wood, MIT Sloan working Paper 4500-04, February 2004.
This paper (no charge download from Social Science Research Network, ssrn.com plus Abstract) suggests:
This is the first in-depth study of the motivations of trader participation in eBay's reputation system.
They find:
This paper (no charge download from Social Science Research Network, ssrn.com plus Abstract) suggests:
- reputation systems are an increasingly important component of online communities, and they
- help elicit good behavior and cooperation.
This is the first in-depth study of the motivations of trader participation in eBay's reputation system.
They find:
- 50 to 70% of voluntary online feedback is not driven by pure altruism ["do gooders"].









Reputation Systems
I think the idea of a Reputation System in the Franchising World would be of benefit to both the franchisor and the franchisee. The concept, however, is so new and I am afraid that some Franchisors would consider it a threat ------even a greater threat than new regulation in that it would give franchisees a voice and a vote.
Those who make their living surrounding the franchise world might also feel that a "reputation registry" would interfere with their livlihoods and won't even want to discuss it with you.
There is no doubt that it would work to weed out the bad franchisors but you know the powers that be are not prone to support any effort that would dampen the enthusiasm to purchase franchises. Franchising is good for business and what is good for business is good for the economy and what is good for the economy is good for the people.
You are the voice in the wilderness that is kept out of town.
Thank you for sharing the studies on self-interest, reciprocity, and Participation in On-line Reputation Systems. Maybe, the Blue Mau Mau site is the first step in the right direction.