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That fact that such actions are noted on the trader’s feedback page mean that a history of troublesome trades cannot be completely hidden, even if they are not reflected in the summary rating numbers. Haggle online, as a contrast, permits both censoring individual comments and the retraction of comments, although in both cases these actions are noted in the trader’s permanent history. When a comment is retracted, the text disappears, but the fact that a comment has been retracted is explicitly noted on the trader’s feedback page. It is the fact that one can easily go to another trader with a better reputation that serves as a powerful motivator to create and maintain a positive reputation. In this system, rather than being given a binary choice between coding one’s feedback comments as positive or negative (or perhaps neutral), participants were asked to rate their satisfaction with the trade on a scale of 0-5. What appeared after the trader’s name was his or her average rating, displayed in stars. Somewhat more restrictive would be to let only registered participants in a market submit comments about a trader. More recently, researchers investigating the dynamics of cooperation have relaxed these constraints, examining settings in which actors have the option of choosing new exchange partners (e.g., Hayashi 1993, Yamagishi et al.

The intriguing success of these markets invites controlled experimental studies that tease out the structural features that encourage cooperation. She also recommends taking advantage of features the platform wants you to use. Fiverr is an online marketplace for digital freelance services founded in 2010. The company itself is headquartered in Israel, but their platform is globally recognized as a one-stop shop for all types of freelancers. Outsourcely’s main goal is to create the most effective platform for connecting talent with employers, even if they live across the world or in a different time zone. If they are operating in a very competitive geographical market like Raleigh or Charlotte in North Carolina, they probably need to spend more time on marketing than companies in smaller towns. Giving users something other than a dichotomous choice in categorizing their comments promises a more fine-grained rating system, although the fact that there are only 5 discrete summary ratings displayed (one cannot display a rating of, e.g., 4.32 stars) means that a lot of information is lost.

What information for each evaluators should be displayed? The strictest policy, such as the one eBay follows, is to not allow individuals to censor specific comments or evaluators to retract comments – the only option is to post a reply to a comment. The options for handling comments on CityAuction are very similar to eBay: individuals can respond to the comments evaluators have made or block all their comments from being seen, but currently one cannot selectively censor or retract comments. This is, of course, one of the great advantages of online trading – distributions costs can approach zero, and the system software can also be used as an automatic monitoring agent, prohibiting, for example, individuals with low ratings from trading. Second, in order to be effective, these reputation-based markets require that there be many alternative trading partners. I also bought 3 BitColors in order to fully dive into their community.

Both in terms of designing better systems for actual use and in order to study these systems rigorously, it is important to lay out the elements of a distributed reputation system and ask about the different ways in which it might be constructed. If these reputation systems do in fact provide useful information and an incentive to behave in a trustworthy manner, buyers should be willing to pay more for a good if it comes from a highly rated seller, at least when the transaction involves significant risk. It would be possible to be even more restrictive and only allow those who have completed a trade with someone to comment on that person’s trustworthiness. It is worthy to note that although a blog is easy to start, it is not as easy to maintain as an online marketing tool since you must continuously perform activities to invite more readers, convert them into loyal buyers and then strengthen your business expanding your customers list. In other words, influencer marketing enables you to build relationships with famous people and that can help you attract loyal customers. 17. Affiliate Marketing is where you use other websites to help drive traffic to your website.