Trust and reputation systems in two online auction and shopping websites from Romania and the Netherlands

Abstract

Online customer-to-customer auction websites are characterised by information asymmetry. The use of a positive or a negative reputation system in such a medium indicates the level of generalized trust of the residents of that country. In this sense, we want to underline the connection between the level of generalized trust in Romania and the Netherlands and the way the two most popular auction web-sites in these countries function as found in the online participatory observation conducted. Based on a background of low generalized trust in Romania, individuals who interact on auction websites require a type of assurance such as public reputation while in the Netherlands, based on a higher level of generalized trust, transactions from customer - To - customer auction websites take place in the absence of such assurances. Copyright © (2012) by Danube Adria Association for Automation and Manufacturing (DAAAM).