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Issue No.05 - May (2011 vol.23)
pp: 699-712
Christopher J. Hazard , North Carolina State University, Raleigh
Munindar P. Singh , North Carolina State University, Raleigh
ABSTRACT
In multiagent interactions, such as e-commerce and file sharing, being able to accurately assess the trustworthiness of others is important for agents to protect themselves from losing utility. Focusing on rational agents in e-commerce, we prove that an agent's discount factor (time preference of utility) is a direct measure of the agent's trustworthiness for a set of reasonably general assumptions and definitions. We propose a general list of desiderata for trust systems and discuss how discount factors as trustworthiness meet these desiderata. We discuss how discount factors are a robust measure when entering commitments that exhibit moral hazards. Using an online market as a motivating example, we derive some analytical methods both for measuring discount factors and for aggregating the measurements.
INDEX TERMS
Trust, reputation, intertemporal discounting.
CITATION
Christopher J. Hazard, Munindar P. Singh, "Intertemporal Discount Factors as a Measure of Trustworthiness in Electronic Commerce", IEEE Transactions on Knowledge & Data Engineering, vol.23, no. 5, pp. 699-712, May 2011, doi:10.1109/TKDE.2010.141
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