Finance & Economics of Xinjiang ›› 2020, Issue (4): 24-31.doi: 10.16716/j.cnki.65-1030/f.2020.04.003

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Construction of Online Reputation Mechanismand Its Influence Effect: A Literature Review

Li Lei, Song Jianwei   

  1. XinJiang University of Finance and Economics, Urumqi 830012,China
  • Received:2019-12-11 Online:2020-08-25 Published:2020-10-26

Abstract: The problem of information asymmetry is particularly prominent in online transactions whereby adverse selection and moral hazard problems hinder the rational allocation of market resources and healthy development of online transactions. Therefore, the construction and influence effect of reputation mechanism in online market have become hot issues of e-commerce research for recent years. Online reputation mechanism is an effective way to solve information asymmetry. From the perspective of signal display function of online reputation mechanism, the effectiveness of feedback evaluation system and credit score rating system has been confirmed, but the research on the overall internal regularity of reputation mechanism is insufficient. On the other hand, online reputation mechanism is also a kind of signal screening and search mechanism. The online reputation of businesses has a significant impact on their own economic benefits, strategic behavior and consumer behavior decisions. Future research should further accurately depict the online behavior of rational-economic men so as to provide basis for the optimization and implementation of reputation mechanism design.

Key words: Online Market, Information Asymmetry, Online Reputation Mechanism, Online Shopping, E-commerce, Electric Business Platform, Credit Score Rating

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