Trust management for e-transactions

There has been enormous increase in transactions and cooperative-computing services on the internet. This is both a technical and a social phenomenon. Transactions and services over the internet have global reach and users, known or unknown to the service provider, might be interested in availing access or participating in the cooperative transaction in a distributed manner. Thus, it is very important for service providers to identify and establish trustworthiness of potential collaborators, which they do by writing contracts (e.g. access control, security policies; the words contract and policy are used interchangeably) without violating the privacy and confidentiality laws that prevail across geographical boundaries. But as the system becomes complex and dynamic, contractual incompleteness arises since it becomes cumbersome to mention potentially large set of outcomes of the user's choice of action. Trust plays a crucial role in the design of optimal contracts; not all the relevant, valuable information on the user's choice of action is incorporated in the equilibrium contract. It may also be noted in that traditional transactions, the notion of seeing is believing plays a vital role. However, in e-transactions, this is not the case. The challenge is to see how in such a scenario trust can indeed be generated. Note that the presence of trust facilitates cooperative behaviour and allows for exchange to occur in situations where its absence would preclude trade. In this paper, we shall present a comparative analysis of various approaches of trust management in practice that integrates technology with other factors. We shall also bring out the relative deficiencies and how these issues are tackled in our ongoing work that facilitates execution of optimal contracts.