A methodology for risk measurement in e-transactions

Risk is present in almost every activity. Alternately speaking, almost every activity may have some undesired outcomes which the person doing the activity hopes that they do not occur when it undertakes that particular activity. The quantification of those undesired outcomes can be termed as Risk. Risk is associated with Trust, Security and Privacy. Risk is also associated with transactions, businesses, information systems, environments, networks, partnerships, etc. Generally speaking, Risk signifies the likelihood of financial loss, human casualties, business destruction and environmental damages. It is important to define Risk according to the context of the transaction in order to understand and analyse it better. In the literature Risk has been defined and discussed in areas such as security, health, finance, environment and social life, but there is no systematic study of Risk in decentralized communications, which involves e-business, computer networks and service oriented environments. Hence in this paper, a particular attention is given to define and analyse Risk in the area of Peer-to-Peer business communications, where Risk is every individual and organization?s concern. Also in this paper we develop a risk indicator scale and develop a methodology by which the Riskiness of the peer can be rated according to its behaviour in an interaction. Risk indicator gives an early warning to the party involved and helps avoid disasters

Evaluating trust in electronic commerce : a study based on the information provided on merchants' websites

Lack of trust has been identified as a major problem hampering the growth of Electronic Commerce (EC). It is reported by many studies that a large number of online shoppers abandon their transactions because they do not trust the website when they are asked to provide personal information. To support trust, we developed an information framework model based on research on EC trust. The model is based on the information a consumer expects to find on an EC website and that is shown from the literature to increase his/her trust towards online merchants. An information extraction system is then developed to help the user find this information. In this paper, we present the development of the information extraction system and its evaluation. This is then followed by a study looking at the use of the identified variables on a sample of EC websites

Risk in Trusted Decentralized Communications

Risk is associated with almost every activity that is undertaken on a daily life. Risk is associated with Trust, Security and Privacy. Risk is associated with transactions, businesses, information systems, environments, networks, partnerships, etc. Generally speaking, risk signifies the likelihood of financial losses, human casualties, business destruction and environmental damages. Risk indicator gives an early warning to the party involved and helps avoid deserters. Until now, risk has been discussed extensively in the areas of investment,finance, health, environment, daily life activitiesand engineering. However, there is no systematic study of risk in Decentralised communication,which involves e-business, computer networks and service oriented environment. In this paper, we define risk associated with trusted communication in e-business and e-transactions; provide risk indicator calculations and basic application areas

Trust Based Participant Driven Privacy Control in Participatory Sensing

Widespread use of sensors and multisensory personal devices generate a lot of personal information. Sharing this information with others could help in various ways. However, this information may be misused when shared with all. Sharing of information between trusted parties overcomes this problem. This paper describes a model to share information based on interactions and opinions to build trust among peers. It also considers institutional and other controls, which influence the behaviour of the peers. The trust and control build confidence. The computed confidence bespeaks whether to reveal information or not thereby increasing trusted cooperation among peers.Comment: 14 page

Time-Decay-Based Reputation Method for Buyers Making Decisions in Online Shopping

Trust and reputation is considered a significant part of the Internet marketing. Internet transactions or interactions involve anonymity of participants, which are more risky on account of uncertainty about the quality of service or identity of service providers. Reputation system is a mechanism to determine who is trustworthy and induce Internet marketing’s participants to maintain a good reputation while performing Internet activities. We consider that the evaluation of service provider’s reputation or participant’s honesty and responsibility constrained in some way by three factors, they are service quality, transaction time, and dollar value involved in the transaction(s), we called them as triple constraint. Very little research had done to pinpoint the relationship between trust and reputation with this triple constraint, especially when trust decay and time decay factors involved in the reputation evaluation process. We propose and investigate a novel dynamic trust and reputation framework based on the three factors mentioned above to reflect the more realistic reputation of the service providers in the Internet market

In crowdfunding we trust : a trust-building model in lending crowdfunding

Trust critically affects the perceived probability of receiving expected returns on investment. Crowdfunding differs in many ways from traditional forms of investing. We have to ask what builds trust in this particular context. Based on literature regarding the formation of initial trust, we developed a model to explain which factors lead to crowdfunders’ trust in a crowdfunding project. We tested it on data collected from actual investors in a real project on a crowdlending platform. Our results show that trust in the crowdfunding platform and the information quality are more important factors of project trust than trust in the creator

A methodology for transactional risk assessment and decision making in e-business interactions

The development and advancement of technologies have enabled users to complete their tasks efficiently. They have also provided them with various options and alternatives to complete and achieve their tasks. In such an environment, it is imperative for a user to make informed decisions that would ensure that its aims or objectives are achieved and its interaction experience is maximized. In the literature, various approaches for decision making have been proposed. But among those approaches, the notion of risk has been considerably ignored in the domain of e-business, despite its having been acknowledged as an important concept related to decision-making in any domain. In this paper, we propose a methodology by which users in an e-business domain can assess and analyze the level of transactional risk in the domain of e-business and then take it into consideration when making an informed interaction-based decision

Private vs. Business Customers in the Sharing Economy – The implications of Trust, Perceived Risk, and Social Motives on Airbnb

The sharing economy is continuously changing the hospitality industry while competing with incumbent businesses over the available market share. This study examines the peer-to-peer renting service Airbnb. In particular, we investigate how social motives, trust, and perceived risk of private and business customers, alter the accommodation provider’s intention to accept a booking request. Understanding the implications of private and business customers is key – not only for platform providers, but also for researchers investigating the sharing economy. In this article, we develop a questionnaire for assessing the influence of the respective customer type on trust, perceived risk, and the provider’s intention. Our pretest employs survey data (n = 53) and principal component analysis (PCA) to prepare a clean structural equation modeling