A Method of Evaluating Trust and Reputation for Online Transaction

Abstract

The widespread use of the Internet and evaluater-based technologies has transformed the way business is conducted. Traditional offline businesses have increasingly become online, and there are new kinds of businesses that solely exist online. Unlike offline business environments, interpersonal trust is generally lacking in online business settings. Trading partners might feel insecure about the exchange of products and services over the net as they have limited information about each other's reliability or about the product quality. Considering that enough trust needs to be created to get the online buyer and seller to take actions, trust is a precious asset in online transactions. In order to address the issue of evaluating trust and reputation in online transaction environments, this paper makes use of a social network that graphically represents interpersonal relationships. This paper proposes computational models that systematically evaluate the quantitative level of trust and reputation based on the social network. A method that combines the evaluated trust and reputation levels is also proposed to increase the reliability of online transactions.