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(rescheduled) ISOM Seminar: Apostolos Filippas, NYU, Info. Sys.
WhenWednesday, Jan 10, 2018, 3:30 – 5 p.m.
Campus locationPACCAR Hall (PCAR)
Campus roomPaccar 394
Event typesLectures/Seminars
Event sponsorsISOM Department
(206) 543-1043

Paccar Hall, Room 394

Seminar Speaker:
 Apostolos Filippas
Affiliation: New York University
Area: Information Systems

Name of Presentation:
Digital Reputation at Risk: Sharing Economy Platforms and New Challenges for Online Reputation System Design

We identify three important differentiators of Sharing Economy platforms from typical online marketplaces. We center on the fact that robust reputation systems are critical in this context, but their long-run behavior is not completely understood. Using data from a large online marketplace, we exhibit that feedback scores have risen sharply over time, leading to substantial top-censoring. While some of the increase is explained by more satisfied raters, at least 30-45% is attributable to raters applying lower standards. We show that this “reputation inflation" is the equilibrium outcome of a model in which (a) inferences made by future trading partners determine what constitutes “bad" feedback and (b) giving “bad" feedback is costly to raters. The introduction of a new feedback system confirms our model predictions: raters were candid when feedback was private, but when feedback suddenly became public, reputations began inflating.…
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