Queensland Treasury Corporation
Trust and reputation systems represent a significant trend in decision support for internet mediated service provision. The basic idea is to let parties rate each other, for example after the completion of a transaction and use the aggregated ratings about a given party to derive a trust or reputation score, which can assist other parties in deciding whether or not to transact with that party in the future. A natural side effect is that it also provides an incentive for good behavior and therefore tends to have a positive effect on market quality. Reputation systems can be called collaborative sanctioning systems to reflect their collaborative nature and are related to collaborative filtering systems. Reputation systems are already being used in successful commercial online applications.