Related papers: Reputation Effects with Endogenous Records
Most online markets establish reputation systems to assist building trust between sellers and buyers. Sellers' reputations not only provide guidelines for buyers but may also inform sellers their optimal pricing strategy. In this research,…
We consider a user releasing her data containing some personal information in return of a service. We model user's personal information as two correlated random variables, one of them, called the secret variable, is to be kept private,…
In this paper, we investigate how dynamic properties of reputation can influence the quality of users ranking. Reputation systems should be based on rules that can guarantee a high level of trust and help identifying unreliable units. To…
In the era of Big Data and Social Computing, the role of customer reviews and ratings can be instrumental in predicting the success and sustainability of businesses. In this paper, we show that, despite the apparent subjectivity of user…
The basic problem in the cooperation theory is to justify the cooperation. Here we propose a new approach, where players are driven by their altruism to cooperate or not. The probability of cooperation depends also on the co-player's…
Reputations provide a powerful mechanism to sustain cooperation, as individuals cooperate with those of good social standing. But how should moral reputations be updated as we observe social behavior, and when will a population converge on…
We hypothesize that portfolio sorts based on the V/P ratio generate excess returns and consist of companies that are undervalued for prolonged periods. Results, for the US market show that high V/P portfolios outperform low V/P portfolios…
We study a repeated sender-receiver game where inspections are public but the sender's action is hidden unless inspected. A detected deception ends the relationship or triggers a finite punishment. We show the public state is one…
We develop a model of content filtering as a game between the filter and the content consumer, where the latter incurs information costs for examining the content. Motivating examples include censoring misinformation, spam/phish filtering,…
Ranking systems have an unprecedented influence on how and what information people access, and their impact on our society is being analyzed from different perspectives, such as users' discrimination. A notable example is represented by…
Strong and supportive social relationships are fundamental to our well-being. However, there are costs to their maintenance, resulting in a trade-off between quality and quantity, a typical strategy being to put a lot of effort on a few…
We derive a fundamental trade-off between standard and adversarial risk in a rather general situation that formalizes the following simple intuition: "If no (nearly) optimal predictor is smooth, adversarial robustness comes at the cost of…
Causal forests estimate how treatment effects vary across individuals, guiding personalized interventions in areas like marketing, operations, and public policy. A standard modeling practice with this method is honest estimation: dividing…
When users rate objects, a sophisticated algorithm that takes into account ability or reputation may produce a fairer or more accurate aggregation of ratings than the straightforward arithmetic average. Recently a number of authors have…
A decision maker repeatedly chooses one of a finite set of actions. In each period, the decision maker's payoff depends on fixed basic payoff of the chosen action and the frequency with which the action has been chosen in the past. We…
Agents rarely act in isolation -- their behavioral history, in particular, is public to others. We seek a non-asymptotic understanding of how a leader agent should shape this history to its maximal advantage, knowing that follower agent(s)…
Online consumer reviews reflect the testimonials of real people, unlike advertisements. As such, they have critical impact on potential consumers, and indirectly on businesses. According to a Harvard study (Luca 2011), +1 rise in…
A sender flexibly acquires evidence--which she may pay a third party to certify--to disclose to a receiver. When evidence acquisition is overt, the receiver observes the evidence gathering process irrespective of whether its outcome is…
A monopolist wants to sell one item per period to a consumer with evolving and persistent private information. The seller sets a price each period depending on the history so far, but cannot commit to future prices. We show that, regardless…
The recent trend for acquiring big data assumes that possessing quantitatively more and qualitatively finer data necessarily provides an advantage that may be critical in competitive situations. Using a model complex adaptive system where…