Trust among Internet Traders

2004 ◽  
Vol 26 (1) ◽  
Author(s):  
Gary E. Bolton ◽  
Elena Katok ◽  
Axel Ockenfels
Keyword(s):  
Economic Theory ◽  
Social Preference ◽  
Social Preferences ◽  
Feedback System ◽  
Intrinsic Motivations ◽  
Online Trading ◽  
Reputation Mechanisms ◽  
Preference Models ◽  
Internet Market ◽  
Reputation Building

AbstractStandard economic theory does not capture trust among anonymous Internet traders. But when traders are allowed to have social preferences, uncertainty about a seller’s morals opens t he door for trust, reward, exploitation and reputation building. We report experiments suggesting that sellers’ intrinsic motivations to be trustworthy are not sufficient to sustain trade when not complemented by a feedback system. We demonstrate that it is the interaction of social preferences and cleverly designed reputation mechanisms that solves to a large extent the trust problem on Internet market platforms. However, economic theory and social preference models tend to underestimate the difficulties of promoting trust in anonymous online trading communities.

scholarly journals Intentions-Based Reciprocity to Monetary and Non-Monetary Gifts

Games ◽  
2018 ◽  
Vol 9 (4) ◽  
pp. 74 ◽  
Author(s):  
Matthew Chao
Keyword(s):  
Real World ◽  
Laboratory Tests ◽  
Social Preference ◽  
Social Preferences ◽  
Dictator Game ◽  
Monetary Incentives ◽  
Gift Giving ◽  
Marketing Literature ◽  
Real World Applications ◽  
Preference Models

Social preference models emphasize that perceived intentions motivate reciprocity. However, laboratory tests of this theory typically manipulate perceived intentions through changes in wealth resulting from a sacrifice in pay by another. There is little evidence on whether reciprocity occurs in response to perceived intentions alone, independent of concurrent changes in pay and giver sacrifice (and any associated guilt from that sacrifice). This paper addresses this gap in the literature by implementing a modified dictator game where gifts to dictators are possible, but where gift transactions are also stochastically prevented by nature. This leads to instances of observed gift-giving intentions that yield no sacrifice or change in outcomes. In addition, this study uses both monetary and non-monetary gifts; previous studies typically use only monetary incentives, even though real-world applications of this literature often involve non-monetary incentives such as business or marketing gifts. The results show that on average, dictators reciprocated strongly to just the intention to give a gift, and they also reciprocated similarly to both monetary and non-monetary gifts. These results are consistent with intentions-based models of social preferences and with much of the marketing literature on business gifts.

Sensitivity of Stationary Equitable Preferences

2017 ◽  
Author(s):  
Tapan Mitra
Keyword(s):  
Finite Number ◽  
Social Preference ◽  
Social Preferences ◽  
Principal Result ◽  
Fundamental Difficulty ◽  
The Future ◽  
Utility Stream ◽  
Preference Orders ◽  
Infinite Utility Streams

The paper studies the sensitivity implications of the class of monotone social preference orders on infinite utility streams which satisfy the axioms of Equity (Finite Anonymity) and Stationarity (Independent Future). The principal result of this investigation is that representability of such preference orders implies a certain lack of sensitivity to the utility stream of any finite number of generations, which we refer to as ‘insensitivity to the present’. Our result points to a fundamental difficulty in implementing the sustainability principle, which requires intertemporal social preferences to reflect fairly the interests of the generations in the present and in the future.

scholarly journals Inequality signals in dorsolateral prefrontal cortex inform social preference models

2018 ◽  
Vol 13 (5) ◽  
pp. 513-524 ◽  
Author(s):  
Lisa Holper ◽  
Christopher J Burke ◽  
Christoph Fausch ◽  
Erich Seifritz ◽  
Philippe N Tobler
Keyword(s):  
Prefrontal Cortex ◽  
Dorsolateral Prefrontal Cortex ◽  
Social Preference ◽  
Dorsolateral Prefrontal ◽  
Preference Models

scholarly journals Reasoning about social preferences with uncertain beliefs

2021 ◽  
Author(s):  
isaac davis ◽  
Ryan W. Carlson ◽  
Yarrow Dunham ◽  
Julian Jara-Ettinger
Keyword(s):  
Expected Utility ◽  
Utility Maximization ◽  
Social Preference ◽  
Social Preferences ◽  
Social Judgments ◽  
Social Agents ◽  
Preference Reasoning ◽  
The Face ◽  
Expected Utility Maximization ◽  
Social Uncertainty

We propose a computational model of social preference judgments that accounts for the degree of an agents’ uncertainty about the preferences of others. Underlying this model is the principle that, in the face of social uncertainty, people interpret social agents’ behavior under an assumption of expected utility maximization. We evaluate our model in two experiments which each test a different kind of social preference reasoning: predicting social choices given information about social preferences, and inferring social preferences after observing social choices. The results support our model and highlight how un- certainty influences our social judgments.

A STRAWSON–LEWIS DEFENCE OF SOCIAL PREFERENCES

2012 ◽  
Vol 28 (3) ◽  
pp. 291-310 ◽  
Author(s):  
Jelle de Boer
Keyword(s):  
Social Preference ◽  
Social Preferences ◽  
Special Kind ◽  
Sufficient Reason ◽  
The Other ◽  
Reactive Attitude ◽  
Do So

This paper examines a special kind of social preference, namely a preference to do one's part in a mixed-motive setting because the other party expects one to do so. I understand this expectation-based preference as a basic reactive attitude (Strawson 1974). Given this, and the fact that expectations in these circumstances are likely to be based on other people's preferences, I argue that in cooperation a special kind of equilibrium ensues, which I call a loop, with people's preferences and expectations mutually cross-referring. As with a Lewis-norm, the loop can get started in a variety of ways. It is self-sustaining in the sense that people with social preferences have sufficient reason not to deviate.

Dictating the Risk: Experimental Evidence on Giving in Risky Environments: Reply

2016 ◽  
Vol 106 (3) ◽  
pp. 840-842 ◽  
Author(s):  
J. Michelle Brock ◽  
Andreas Lange ◽  
Erkut Y. Ozbay
Keyword(s):  
Experimental Evidence ◽  
Social Preference ◽  
Social Preferences ◽  
Preference Model ◽  
Ex Post ◽  
Ex Ante ◽  
Fairness Concerns

In Brock, Lange, and Ozbay (2013), we experimentally investigate social preferences under risk. One of our conclusions is that a social preference model incorporating both ex ante and ex post fairness concerns may best describe behavior. Krawczyk and Le Lec (2016 ) argue that ex ante comparisons alone may account for our data. We address their points in this reply. (JEL C72, D63, D64, D81)

Familiarity and gender influence social preferences in prairie voles (Microtus ochrogaster)

1997 ◽  
Vol 75 (2) ◽  
pp. 295-301 ◽  
Author(s):  
A. Courtney DeVries ◽  
Camron L. Johnson ◽  
C. Sue Carter
Keyword(s):  
Social Preference ◽  
Social Preferences ◽  
Group Cohesion ◽  
Gonadal Hormones ◽  
Microtus Ochrogaster ◽  
Same Sex ◽  
Prairie Voles ◽  
Male And Female ◽  
Sex Preferences ◽  
Opposite Sex

The physiological mechanisms influencing group cohesion and social preferences are largely unstudied in prairie voles (Microtus ochrogaster). In nature, prairie vole family groups usually consist of an adult male and female breeding pair, one or more litters of their offspring, and occasionally unrelated adults. Pair bonds, defined by heterosexual preferences, develop in male and female prairie voles following cohabitation or mating. However, social preferences between members of the same sex also may be important to the maintenance of communal groups. In the present study we compared the development of social preferences for conspecific strangers of the same sex versus preferences for the opposite sex, and examined the effect of the gonadal status of the stimulus animal on initial social preference. The present study revealed that reproductively naive males, but not females, showed initial preferences for partners of the opposite sex. In both sexes preferences for the opposite sex were not influenced by the presence or absence of gonadal hormones. Heterosexual and same-sex preferences for a familiar individual formed following 24 h of nonsexual cohabitation in both males and females. Male and female same-sex preferences, however, were no longer stable when the stranger in the preference test was of the opposite sex to the experimental animal. The development of same-sex preferences may help to maintain group cohesion, but same-sex preferences formed by cohabitation do not withstand the challenge of an opposite-sex stranger.

scholarly journals E-Business Experiences with Online Auctions

2011 ◽  
pp. 103-115 ◽  
Author(s):  
Bernhard Rumpe
Keyword(s):  
Online Auctions ◽  
Pricing Strategies ◽  
Early Stages ◽  
Business Applications ◽  
Online Trading ◽  
Online Business ◽  
Strategic Position ◽  
Internet Market ◽  
Market Volume

Online auctions are among the most influential e-business applications. Their impact on trading for businesses, as well as consumers, is both remarkable and inevitable. There have been considerable efforts in setting up market places, but, with respects to market volume, online trading is still in its early stages. This chapter discusses the benefits of the concept of Internet marketplaces, with the highest impact on pricing strategies, namely, the conduction of online business auctions. We discuss their benefits, problems and possible solutions. In addition, we sketch actions for suppliers to achieve a better strategic position in the upcoming Internet market places.

scholarly journals Increased anxiety and decreased sociability in adulthood following paternal deprivation involve oxytocin in the mPFC

2017 ◽  
Author(s):  
Zhixiong He ◽  
Limin Wang ◽  
luo Luo ◽  
Rui Jia ◽  
Wei Yuan ◽  
...  
Keyword(s):  
Social Preference ◽  
Social Preferences ◽  
Receptor Protein ◽  
Prelimbic Cortex ◽  
Adult Males ◽  
V1a Receptor ◽  
Important Target ◽  
Adverse Experiences ◽  
Males And Females ◽  
Mandarin Vole

AbstractEarly adverse experiences often have devastating consequences on adult emotional and social behavior. However, whether paternal deprivation (PD) during the pre-weaning period affects brain and behavioral development remains unexplored in socially mandarin vole (Microtus mandarinus). We found that PD increased anxiety-like behavior and attenuated social preference in adult males and females; decreased prelimbic cortex OT-immunoreactive fibers and paraventricular nucleus OT positive neurons; reduced levels of medial prefrontal cortex (mPFC) OT receptor protein in females and OT receptor and V1a receptor protein in males. Intra-prelimbic cortical OT injections reversed anxiety-like behavior and social preferences affected by PD, whereas injections of OT and OT receptor antagonist blocked this reversal. These findings demonstrate that PD leads to increased anxiety-like behavior and attenuated social preferences with involvement of the mPFC OT system. The prelimbic cortex OT system may be an important target for the treatment of disorders related to early adverse experiences.

Improving Trustworthiness in E-Market Using Attack Resilient Reputation Modeling

2014 ◽  
Vol 10 (3) ◽  
pp. 57-82
Author(s):  
Neeraj Kumar Sharma ◽  
Vibha Gaur ◽  
Punam Bedi
Keyword(s):  
Asymmetric Information ◽  
Moral Hazard ◽  
Adverse Selection ◽  
Reputation Systems ◽  
Trust And Reputation ◽  
Reputation Mechanisms ◽  
Reputation Building ◽  
Building Parameters

Asymmetric information is a major problem in e-commerce transactions as it gives rise to adverse selection and moral hazard problems. Reputation mechanisms provide a solution to this problem by discouraging fraudulent behavior and encouraging honest behavior of participants in the uncertain and un-trusted environment of e-market. This paper discusses trust and reputation relationships, and highlights the importance of key reputation building parameters to enhance trustworthiness of participants. Finally, it proposes reputation metrics that guard reputation systems from various attacks by malicious participants to improve the quality of e-market and presents a working prototype.

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