---
_id: '5330'
abstract:
- lang: eng
  text: "In Internet transactions, customers and service providers often interact
    once and anonymously.\r\nTo prevent deceptive behavior a reputation system is
    particularly important to\r\nreduce information asymmetries about the quality
    of the offered product or service. In this\r\nstudy we examine the effectiveness
    of a reputation system to reduce information asymmetries\r\nwhen customers may
    make mistakes in judging the provided service quality. In our model,\r\na service
    provider makes strategic quality choices and short-lived customers are asked to\r\nevaluate
    the observed quality by providing ratings to a reputation system. The customer
    is\r\nnot able to always evaluate the service quality correctly and possibly submits
    an erroneous\r\nrating according to a predefined probability. Considering reputation
    profiles of the last three\r\nsales, within the theoretical model we derive that
    the service provider’s dichotomous quality\r\ndecisions are independent of the
    reputation profile and depend only on the probabilities of\r\nreceiving positive
    and negative ratings when providing low or high quality. Thus, a service\r\nprovider
    optimally either maintains a good reputation or completely refrains from any reputation\r\nbuilding
    process. However, when mapping our theoretical model to an experimental\r\ndesign
    we find that a significant share of subjects in the role of the service provider
    deviates\r\nfrom optimal behavior and chooses actions which are conditional on
    the current reputation\r\nprofile. With respect to these individual quality choices
    we see that subjects use milking\r\nstrategies which means that they exploit a
    good reputation. In particular, if the sales price\r\nis high, low quality is
    delivered until the price drops below a certain threshold, and then\r\nhigh quality
    is chosen until the price increases again."
article_number: e0207172
article_type: review
author:
- first_name: Behnud
  full_name: Mir Djawadi, Behnud
  id: '26032'
  last_name: Mir Djawadi
  orcid: 0000-0002-6271-5912
- first_name: Rene
  full_name: Fahr, Rene
  id: '111'
  last_name: Fahr
- first_name: Claus-Jochen
  full_name: Haake, Claus-Jochen
  id: '20801'
  last_name: Haake
- first_name: Sonja
  full_name: Recker, Sonja
  last_name: Recker
citation:
  ama: Mir Djawadi B, Fahr R, Haake C-J, Recker S. Maintaining vs. Milking Good Reputation
    when Customer Feedback is Inaccurate. <i>PLoS ONE</i>. 2018;13(11). doi:<a href="https://doi.org/10.1371/journal.pone.0207172">10.1371/journal.pone.0207172</a>
  apa: Mir Djawadi, B., Fahr, R., Haake, C.-J., &#38; Recker, S. (2018). Maintaining
    vs. Milking Good Reputation when Customer Feedback is Inaccurate. <i>PLoS ONE</i>,
    <i>13</i>(11). <a href="https://doi.org/10.1371/journal.pone.0207172">https://doi.org/10.1371/journal.pone.0207172</a>
  bibtex: '@article{Mir Djawadi_Fahr_Haake_Recker_2018, title={Maintaining vs. Milking
    Good Reputation when Customer Feedback is Inaccurate}, volume={13}, DOI={<a href="https://doi.org/10.1371/journal.pone.0207172">10.1371/journal.pone.0207172</a>},
    number={11e0207172}, journal={PLoS ONE}, publisher={Public Library of Science},
    author={Mir Djawadi, Behnud and Fahr, Rene and Haake, Claus-Jochen and Recker,
    Sonja}, year={2018} }'
  chicago: Mir Djawadi, Behnud, Rene Fahr, Claus-Jochen Haake, and Sonja Recker. “Maintaining
    vs. Milking Good Reputation When Customer Feedback Is Inaccurate.” <i>PLoS ONE</i>
    13, no. 11 (2018). <a href="https://doi.org/10.1371/journal.pone.0207172">https://doi.org/10.1371/journal.pone.0207172</a>.
  ieee: B. Mir Djawadi, R. Fahr, C.-J. Haake, and S. Recker, “Maintaining vs. Milking
    Good Reputation when Customer Feedback is Inaccurate,” <i>PLoS ONE</i>, vol. 13,
    no. 11, 2018.
  mla: Mir Djawadi, Behnud, et al. “Maintaining vs. Milking Good Reputation When Customer
    Feedback Is Inaccurate.” <i>PLoS ONE</i>, vol. 13, no. 11, e0207172, Public Library
    of Science, 2018, doi:<a href="https://doi.org/10.1371/journal.pone.0207172">10.1371/journal.pone.0207172</a>.
  short: B. Mir Djawadi, R. Fahr, C.-J. Haake, S. Recker, PLoS ONE 13 (2018).
date_created: 2018-11-03T11:51:48Z
date_updated: 2022-01-06T07:01:50Z
ddc:
- '330'
department:
- _id: '205'
- _id: '475'
doi: 10.1371/journal.pone.0207172
file:
- access_level: closed
  content_type: application/pdf
  creator: cjhaake
  date_created: 2018-11-13T20:51:34Z
  date_updated: 2018-11-13T20:51:34Z
  file_id: '5542'
  file_name: Maintaining_vs_Milking.pdf
  file_size: 1107189
  relation: main_file
  success: 1
file_date_updated: 2018-11-13T20:51:34Z
funded_apc: '1'
has_accepted_license: '1'
intvolume: '        13'
issue: '11'
language:
- iso: eng
project:
- _id: '7'
  name: SFB 901 - Subproject A3
- _id: '8'
  name: SFB 901 - Subproject A4
- _id: '1'
  name: SFB 901
- _id: '2'
  name: SFB 901 - Project Area A
publication: PLoS ONE
publication_identifier:
  eissn:
  - 1932-6203
publication_status: published
publisher: Public Library of Science
status: public
title: Maintaining vs. Milking Good Reputation when Customer Feedback is Inaccurate
type: journal_article
user_id: '477'
volume: 13
year: '2018'
...