Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215743 
Year of Publication: 
2020
Series/Report no.: 
cege Discussion Papers No. 389
Publisher: 
University of Göttingen, Center for European, Governance and Economic Development Research (cege), Göttingen
Abstract: 
We study the robustness of reputation management systems against distortions in rating behavior. In a laboratory trust experiment with reputation management, we mimic a positive bias by exclusively offering the option to rate positively or to give no rating. As predicted by theoretical considerations, this bias leads to significantly less trust than a system that additionally offers a negative rating option. A system relying solely on negative ratings does not have such an adverse effect. This highlights the importance of negative ratings for the effectiveness of reputation systems.
Subjects: 
Trust
Trustworthiness
Reputation System
Experiment
JEL: 
C91
L14
C73
Document Type: 
Working Paper

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