Measuring feedback credibility by customer value in C2C trust model

Trust is emerging as a key element of success in C2C electronic trade. Rater's credibility which is used to avoid false feedbacks is the most important factor in feedback-based trust system. A reputation and RFM mixed model to compute rater's credibility is proposed in this study. Comparing the cost of trust fraud and the evolution cost of rater's credibility by simulation analysis, the mixed model is suitable to resist the low cost fraud, such as sign some accounts to buy his own goods and then give high feedback value. And empirical analysis has verified that the trust mechanism can reduce failure transaction ratio superior to single reputation. © 2011 Asian Network for Scientific Information.