Ground Projects

It would still be possible for an untrustworthy trader to continually change identities as a way of at least having a neutral reputation, but if others will only trade with those who have established successful track records, or impose additional conditions on those who have no track record (see below), this will not be a successful strategy. For this reason, participants are cautioned to always check at least a subset of the references to make sure the email address is valid and that the reference has in fact traded successfully with the person in question. Blacklists create a kind of durable gossip that can be used as a reference by all group members in managing their risks in trading. Further, every attempt should be made to be sure the person with whom one is trading is happy with the terms and execution of the trade so that one might ask to use the person as a reference.

The requirements of a positive reputation system are less onerous than a negative system: the key requisite condition is that one cannot easily claim the identity of another (known as spoofing in many online groups), so that one cannot improperly damage or free-ride on that person’s reputation. But the serious danger here is that as a result of a misunderstanding, circumstances beyond an individual’s control, or the deliberate desire to damage someone’s name, a person will be falsely accused and suffer the consequences. In the Usenet groups, it can take time for listings to propagate to all the servers, traders have little control about when a post to a Usenet group will disappear, it can be difficult to estimate the market value of an item, and there is no structured, institutionalize system for collecting and distributing information about participants’ reputations. This has the advantage of making the report public to participants of the market, and is the beginnings of a negative reputation system: a public system that distributes information on untrustworthy traders. And the extremely low information distribution costs meant that the lists could be made available to an unlimited number of individuals. As helpful as this information is, it certainly does not eliminate bad trades, whether the issue is tapes or funds that never arrived, or receiving a tape of poorer quality than was advertised.

While some lists simply noted the names of bad traders, others provided richer information, including the name and email address of both the accused and accuser as well as an explanation of what went wrong with the trade. This can take the form of individual traders appending a list of positive references (with email addresses) to their post, or aggregated lists of good traders with references. Traders with approximately equal number of references are expected to “simul-send” – sending their cards to each other at the same time. Thus a score of 10 might mean 10 positive comments, or 110 positive comments, 100 negative comments, and any number of neutral comments. After every seller’s or bidder’s name is a number in parenthesis. Sometimes anyone with positive references are listed, with the names of the references following their name. There are millions of people like you who are also trying to make money on the Internet. Platforms like Shopify make it easy to get your online shop up and running quickly. Buyers and sellers can get a good sense of fair market value by reviewing the history of auctions for similar items. Buyers and sellers are both subject to peer review.

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