1,655 research outputs found
Reputation based Buyer Strategies for Seller Selection in Electronic Markets
Reputation based adaptive buying agents that reason about sellers for purchase decisions have been designed for B2C ecommerce markets. Previous research in the area of buyer agent strategies for choosing seller agents in ecommerce markets has focused on frequent purchases. In this thesis, we present reputation based strategies for buyer agents to choose seller agents in a decentralized multi agent based ecommerce markets for frequent as well as infrequent purchases. We consider a marketplace where the behavior of seller agents and buyer agents can vary, they can enter and leave the market any time, they may be dishonest, and quality of the product can be gauged after actually receiving the product. Buyer agents exchange seller agents' information, which is based on their own experiences, with other buyer agents in the market. However, there is no guarantee that when other buyer agents provide information, they are truthful or share similar opinions. First we present a method for buyer agent to model a seller agent's reputation. The buyer agent computes a seller agent's reputation based on its ability to meet its expectations of product quality and price as compared to its competitors. We show that a buying agent acting alone, utilizing our model of maintaining seller agents' reputation and buying strategy does better than buying agents acting alone employing strategies proposed previously by other researchers for frequent as well as for infrequent purchases. Next we present two methods for buyer agents to identify other trustworthy buyer agent friends who are honest and have similar opinions regarding seller agents, based on sharing of seller agents' information with each other. In the first method, buyer agent utilizes other buyer agents' opinions and ratings of seller agents to identify trustworthy buyer agent friends. Reputation of seller agents provided by trustworthy buyer agent friends is adjusted to account for the differences in the rating systems and combined with its own information on seller agents to choose high quality, low priced seller agent. In the second method, buyer agent only utilizes other buyer agents' opinions of seller agents to identify trustworthy buyer agent friends. Ratings are assigned to seller agents by the buyer agent based on trustworthy friend buyer agents' opinions and combined with its own rating on seller agents to choose a high quality, low priced seller agent to purchase from. We conducted experiments to show that both methods are successful in distinguishing between trustworthy buyer agent friends, whose opinions should be utilized in decision making, and untrustworthy buyer agent friends who are either dishonest, or have different opinions. We also show that buyer agents using our models of identifying trustworthy buyer agent friends have higher performance than a buyer agent acting alone for infrequent purchases and for increasing numbers of sellers in the market. Finally we analyze the performances of buyer agents with risk taking and conservative attitudes. A buyer agent with risk taking attitude considers a new seller agent as reputable initially and tends to purchase from a new seller agent if they are offering the lowest price among reputable seller agents. A buyer agent with conservative attitude is cautious in its approach and explores new seller agents at a rate proportional to the ratio of unexplored seller agents to the all the seller agents who have sent bids. Our results show that, when buyer agents are making decisions based on their own information, a buyer agent with conservative attitude has the best performance. When buyer agents are utilizing information provided by their trusted friends, a buyer agent with risk taking attitude and using only trusted friend buyer agents' opinions of seller agents has the best performance. In summary, the main contributions of this dissertation are: 1.A new reputation based way to model seller agents by buyer agents based on direct interactions. 2.A protocol to exchange reputation information about seller agents with other buyer agent friends based on the friends' direct interaction with seller agents. 3.Two methods of identifying trustworthy buyer agent friends who are honest and share similar opinions, and utilizing the information provided by them to maximize a buyer agent's chances of choosing a high quality, low priced seller agent to purchase from
Essays on Dynamic Games of Incomplete Information
This dissertation consists of three essays that study the dynamic games with incomplete information. In the first chapter, I study a dynamic trading game where a seller and potential buyers start out symmetrically uninformed about the quality of a good, but the seller becomes informed about the quality, so that the asymmetric information between the agents increases over time. The introduction of a widening information gap results in several new phenomena. In particular, the interaction between screening and learning generates nonmonotonic price and trading patterns, contrary to the standard models in which asymmetric information is initially given. If the seller\u27s effective learning speed is high, the equilibrium features collapse-and-recovery behavior: Both the equilibrium price and the probability of a trade drop at a threshold time and then increase later. The seller\u27s payoff is nonmonotonic in his learning speed, as a slower learning speed can lead to higher payoff for the seller.
In the second chapter, I study a dynamic one-sided-offer bargaining model between a seller and a buyer under incomplete information. The seller knows the quality of his product while the buyer does not. During bargaining, the seller randomly receives an outside option, the value of which depends on the hidden quality. If the outside option is sufficiently important, there is an equilibrium in which the uninformed buyer fails to learn the quality and continues to make the same randomized offer throughout the bargaining process. As a result, the equilibrium behavior produces an outcome path that resembles the outcome of a bargaining deadlock and its resolution. The equilibrium with deadlock has inefficient outcomes such as a delay in reaching an agreement and a breakdown in negotiations. Bargaining inefficiencies do not vanish even with frequent offers, and they may exist when there is no static adverse selection problem.
In the third chapter, I address the following question: when does an incumbent party have an incentive to experiment with a risky reform policy in the presence of future elections? I study a continuous-time game between two political parties with heterogeneous preferences and a median voter. I show that while infrequent elections are surely bad for the median voter, too frequent elections can also make him strictly worse off. When the election frequency is low, a standard agency problem arises and the incumbent party experiments with its preferred reform policy even if its outlook is not promising. On the other hand, when the election frequency is too high, in equilibrium the incumbent stops experimentation too early because the imminent election increases the incumbent\u27s potential loss of power if it undertakes risky reform. The degree of inefficiency is large enough that too frequent elections are worse for the median voter than a dictatorship
An Examination of a Multidimensional Model of Customer Satisfaction with Internet Purchasing
The World Wide Web and Internet have transformed the competitive business environment and altered the customer-firm relationship by creating a new retailing format and service enterprise. It is rapidly growing as a competitive distribution medium in which customer satisfaction will be a major success factor in the development and maintenance of this new retailing format. Despite its growing importance as a new shopping medium, little empirical research has been conducted that examines the relationship between Internet shopping, customer satisfaction, company image, and future online purchasing. Research is needed to develop theoretical models that will systematically explain and predict behavior related to Internet shopping.
The purpose of this dissertation research was to examine how consumers become satisfied with an Internet purchasing experience, how company image is impacted by the shopping experience, and how satisfaction and company image affect future purchase behavior. Specifically, the constructs of information quality, ease of use, value, and expectation congruency were examined to determine their influence on satisfaction and company image in the context of shopping over the Internet. In order to assess the various relationships that exist in the proposed model of customer satisfaction with Internet purchasing, a structural modeling approach was employed. In addition, analysis of variance test of significance was conducted to determine if there were any differences in the mean ratings of satisfaction with an Internet purchase among different groups of consumers.
Overall, the results of testing the model in this study support the assertion that a positive and direct relationship exists between customer satisfaction and the intention to continue shopping at a firm\u27s Web site. The results also provide evidence for the factors that significantly influence satisfaction with online shopping. Economic value and ease of use were found to have a positive and direct effect on consumer satisfaction with an Internet purchasing experience. These findings may be important for marketing managers because they can provide guidelines for planning Internet strategies to develop customer satisfaction and maintain customer loyalty. A positive and direct effect between company image and consumers\u27 desires to continue shopping on the firm\u27s Web site was also statistically supported by the data. The factors found to influence a positive company image after shopping at a firm\u27s Web site are ease of use and economic value. The results of the study also revealed that expectations and frequency of Internet shopping affected consumer\u27s ratings of satisfaction. The findings from this study may provide future researchers with evidence to expand their understanding of how the electronic retail medium of the Internet impacts the customer-firm relationship. In summary, this study provides empirical support for the factors that influence satisfaction with an Internet shopping experience, company image, and future purchasing behavior from a firm\u27s Web site
Bilateral and Community Enforcement in a Networked Market with Simple Strategies
We present a model of repeated games in large buyer-seller networks in the presence of reputation networks via which buyers share information about past transactions. The model allows us to characterize cooperation networks - networks in which each seller cooperates (by providing high quality goods) with every buyer that is connected to her. To this end, we provide conditions under which: [1] the incentives of a seller s to cooperate depend only on her beliefs with respect to her local neighborhood - a subnetwork that includes seller s and is of a size that is independent of the size of the entire network; and [2] the incentives of a seller s to cooperate can be calculated as if the network was a random tree with seller s at its root. Our characterization sheds light on the welfare costs of relying only on repeated interactions for sustaining cooperation, and on how to mitigate such costs.Networks, moral hazard, graph theory, repeated games
Efficiency of purchasing and selling agents in markets with quality uncertainty: The case of illicit drug transactions
illicit drug markets, quality uncertainty, efficient transactions
Analysing Repeat Visitation on Country Level with Passive Mobile Positioning Method: an Estonian Case Study
The purpose of this paper is to investigate the capabilities and limits of the passive mobile positioning (PMP) method in studying loyalty of tourists on the macro level. The repeat visitors were identified using database of call activities of roaming phones in Estonia since 25.04.2005 till 31.01.2009. For this purpose was developed model which selected repeat visits on the basis of time interval. The findings of the study revealed that it is possible to observe the duration, density, seasonality and dynamics of repeat visitations. In addition the local destinations and events most loved by repeat visitors and the trajectory they are using could be also identified. Another important finding revealed that repeat visitors stay longer in destination than first time visitors. The results presented in this paper could be used by Estonian Ministry of Economic Affairs and Communications and by Enterprise Estonia developing the Estonian tourism polic
Protecting Consumers As Sellers
When the majority of modern contract and consumer protection laws were written in the 1950s, ’60s, and ’70s, consumers almost always acted as buyers, and businesses almost always acted as sellers. As a result, these laws reflect a model of strong sellers and weak buyers. But paradigms are shifting. Advances in technology and constraints on consumers’ financial lives have pushed consumers into new roles. Consumers today often act as sellers—hawking gold to make ends meet, peddling durable goods on eBay, or offering services in the sharing economy to make a profit. Consumers and business models have changed, but the laws have not. This Article uncovers the new role that consumers play as sellers and argues that lawmakers should reform outdated laws to protect them
Community Enforcement of Informal Contracts: Jewish Diamond Merchants in New York
The diamond industry is home to many unusual features: the predominance of an ethnically homogeneous community of merchants, the norm of intergenerational family businesses, and a rejection of public courts in favor of private contract enforcement. This paper explains that the diamond industry\u27s unique attributes arise specifically to meet the particularly rigorous hazards of transacting in diamonds. Since diamonds are portable, easily concealable, and extremely valuable, the risk associated with a credit sale can be especially costly. However, the industry enjoys valuable organizational efficiencies if transactions occur on credit between independent, fully incentivized agents. Thus, an efficient system of exchange will find ways to induce merchants who purchase on credit to fulfill their payment obligations. The very features that give the diamond industry an unusual profile are responsible for providing institutions to support credit sales. A system of private arbitration spreads information regarding merchants\u27 past dealings, so a reputation mechanism to monitor merchants can take hold. Intergenerational legacies, though restricting entry only to those who can inherit good reputations from family members, resolve an end-game problem and induce merchants to deal honestly through their very last transaction. And the participation of Ultra-Orthodox Jews, for whom inclusion and participation in their communities is equally paramount to their material wealth, serve important value-added services as diamond cutters and brokers without posing the threat of theft and flight
The Dimensions of Reputation in Electronic Markets
We analyze how di erent dimensions of a seller's reputation a ect pricing power in electronic markets. We do
so by using text mining techniques to identify and structure dimensions of importance from feedback posted
on reputation systems, by aggregating and scoring these dimensions based on the sentiment they contain,
and using them to estimate a series of econometric models associating reputation with price premiums. We
nd that di erent dimensions do indeed a ect pricing power di erentially, and that a negative reputation
hurts more than a positive one helps on some dimensions but not on others. We provide the rst evidence
that sellers of identical products in electronic markets di erentiate themselves based on a distinguishing
dimension of strength, and that buyers vary in the relative importance they place on di erent ful lment
characteristics. We highlight the importance of textual reputation feedback further by demonstrating it
substantially improves the performance of a classi er we have trained to predict future sales. This paper is
the rst study that integrates econometric, text mining and predictive modeling techniques toward a more
complete analysis of the information captured by reputation systems, and it presents new evidence of the
importance of their e ective and judicious design.NYU, Stern School of Business, IOMS Department, Center for Digital Economy Researc
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