Transcript 4.03 Slides
Reputation and Trust Uncertainty and Risk What are the Solutions to Uncertainty in the Social Environment? Proxy’s and ‘inferred trustworthiness’ Herd behavior If everyone is using it, it has to be good…right? Closed Systems versus Open Systems 3rd party reputation is perhaps the most common solution What about when reputation is not possible (or practical)? 3 Reputation as a Solution to the Problem of Uncertainty: Information Asymmetries Problem of Lemons (Akerlof, 1970) Information asymmetry in the marketplace 4 What constitutes a reputation? What they do… Foster good behavior Punish bad behavior Reduce risk in long term Transmission can be word-of-mouth, or more chronicled directly Reputations concern people and organizations, not things. To be effective, require clear criteria and incentives Explicit or Implicit? 5 Positive, Negative and Mixed Reputation Systems Positive Start at a baseline, can only go up. Negative Start at a baseline, can only go down. Mixed Start at a baseline, can go below or above baseline 6 For rd 3 Party Reputations to Work... Must have permanent identities. Must make the feedback available for others to inspect. Individuals have to actually pay attention to and use the reputations. 7 Trust and Trustworthiness Trustworthiness Assessing Trustworthiness Treated as a ‘characteristic’ Involves initial, one-shot interactions between parties Theoretically linked to perceived competence and motivations of a given partner Competence to act in a way we deem appropriate Motivation to act in our best interests 9 Example Study Examining Trustworthiness: Online Sale Survey Assessing Trustworthiness Tseng and Fogg (1999) [from Hertzum Anderson, et al] First-hand experience Reputation Surface ‘attributes’ Stereotypes First-hand experience is essential to building ‘trust’, as well as 3rd party reputations Surface ‘attributes’ and ‘stereotypes’ more accurately about assessing trustworthiness. 12 Approaches to Trust Psychology Trust as “personality trait” (dispositional trust) Trust as learned experience (learned trust) Philosophy Trust versus reliance and other concepts Sociology Trust as behavior (situational trust) Through risk and uncertainty Other factors such as the medium (i.e., CMC) Perceptions based on characteristics: assessment of trustworthiness Trust as cognitive: It is reflected in attitudes about another’s desire and ability to act in a positive way towards us in a given context. 13 “Trust concerns a positive expectation regarding the behavior of somebody or something in a situation that entails risk to the trusting party.” “Trust exists whether it is explicitly recognized or not” (Marsh and Dibben) Trust-Building in Sociological Sense Trust-building Involves repeated interactions between parties Theoretically linked to risk in the social exchange situation (e.g., what is at stake in the interaction?) Trust is not the same as cooperation Trust-building can involve various types of uncertainty, which is also distinct from risk. (e.g., how confident are we in a particular outcome?) 15 Locus of Trust Interpersonal Trust Organizational Trust Do organizations ‘trust’? Society-level Trust “general trust” 16 Trust versus Reliance Role of Betrayal If we rely on someone to do something, if he/she/it does not do so we are disappointed. i.e., inanimate objects (car brakes, computer) Role of ‘monitoring’ systems Monitoring and surveillance of individuals: trust, distrust, or reliance? 17 Trust in Information and Information Systems “providers” E.g., virtual agent representations “trusted systems” But is it really “trust” or just reliability? 18