Social Norm Design for Information Exchange Systems with Limited Observations
Information exchange systems, such as BitTorrent, Yahoo Answers, Yelp, Amazon Mechanical Turk, differ in many ways, but all share a common vulnerability to selfish behavior and free-riding. In this paper, the authors build incentives schemes based on social norms. Social norms prescribe a social strategy for the agents in the system to follow and deploy reputation schemes to reward or penalize agents depending on whether they follow or deviate from the prescribed strategy when selecting actions. Because agents in these systems often have only limited capability to observe the global system information, e.g. the reputation distribution of the agents participating in the system, their beliefs about the reputation distribution are heterogeneous and biased.