In the past, trust was bound to personal relationships and trustworthy institutions. Nowadays sharing economy companies rely on reputation systems for decentralized trust. Profiles and ratings are replacing collaterals and institutional trust.
Reputation platforms like Traity aggregate data from different sources like social media and calculate a score that expresses the trustworthiness of a person. In his publication, Markus Bergmann examines an important question: Which influence do the information from social media and reputation platforms have on the assessment of strangers in peer-to-peer transactions?
Bergmann therefore simulated a survey with about 100 participants in which the trustworthiness of potential tenants was rated. He focusses on peer-to-peer room rental. But his results generally show to which extend companies and individuals can influence their trustworthiness via Facebook and Traity profiles.
In this book:
- Trust;
- Reputation;
- Scoring;
- Deposit;
- Trustworthiness;
- Sharing Economy
Table of Contents
1 Introduction
2 Theoretical Background
2.1 Trust
2.2 Sharing
3 Hypotheses Development
4 Methodology
4.1 Research Model
4.2 Sampling
4.3 Sample Size
4.4 Survey Design
4.5 Pretest
4.6 Main Study
5 Analysis and Results
5.1 Extract, Transform and Load
5.2 Sample
5.3 Quantitative Analysis
5.4 Qualitative Analysis
6 Conclusion
6.1 Limitations
6.2 Practical Implications
6.3 Further Research
Research Objectives and Themes
This master thesis investigates how information provided by social media and reputation platforms influences the perceived trustworthiness of strangers in peer-to-peer rental transactions. The research aims to determine if such data can effectively reduce perceived risk and alleviate the reliance on excessive financial deposits.
- The role of trust and reputation systems in the sharing economy.
- Methodological simulation of peer-to-peer room rental scenarios.
- Analysis of trustworthiness perceptions based on varying information levels.
- Examination of the impact of social profile information on deposit demands.
Excerpt from the Book
1 Introduction
Urbanization is spreading rapidly, and resources are becoming scarce. Underutilized assets and vacancies lead to increasing rents and lack of space for green urban development (Heinrichs, 2013). Slowly the access trumps ownership paradigm is spreading but many people are still reluctant to give up the security and convenience of possession (Belk, 2014). The sharing economy is creating new opportunities for people-powered marketplaces that will increase utilization and change municipal living in manifold ways (Teubner, Adam, Camacho, & Hassanein, 2014). Ever-present smartphones allow citizens real-time awareness of urban resources like ride-sharing and enable them to find underutilized assets while on the go (Möhlmann, 2015).
The anonymity of cities is an obstacle to open sharing and stands in strong contrast to life in the countryside, where everyone knows everyone and opportunistic behavior is effectively punished by the community (Levine, Vilena, Altman, & Nadien, 2010). Brands and institutions offered a way out of this trust crisis caused by anonymity but became „disconnected from the interests and opinions of the people they serve” (Matthew, 2017, para. 2) and periodic scandals have corrupted the unquestioned top-down trust. It is important to note, that „trust is an important lubricant for social and economic transactions. Higher levels of trust and trustworthiness can reduce transaction costs by allowing the use of informal agreements instead of complex contracts and their costly enforcement“ (Ermisch, Gambetta, Laurie, Siedler, & Noah Uhrig, 2009, p. 749). For the sharing economy to work on a large scale, it is, therefore, necessary to create trust, which in simple terms is a social complexity reducing mechanism and results from the perception that the other party will fulfill its obligations (Luhmann, 2017).
Summary of Chapters
1 Introduction: Provides an overview of the sharing economy and the role of trust, introducing reputation platforms like Traity as a potential solution to the trust crisis in peer-to-peer transactions.
2 Theoretical Background: Explores definitions of trust, risk-taking, sharing, and the specific dynamics of reputation mechanisms and the landlord-tenant relationship.
3 Hypotheses Development: Outlines the research question regarding reputation's effect on trust and formulates hypotheses to test trustworthiness perceptions and deposit amounts.
4 Methodology: Details the research model, sampling procedure, survey design using scenarios, and the methods for measuring and analyzing data.
5 Analysis and Results: Presents the quantitative findings from the survey data, including demographic analysis, construct reliability, and the testing of the formulated hypotheses.
6 Conclusion: Summarizes the key findings, discusses limitations of the study, presents practical implications for the sharing economy, and suggests directions for further research.
Keywords
Trust, Reputation, Scoring, Deposit, Scenario, Trustworthiness, Sharing Economy, Social Media, Peer-to-Peer, Survey, Landlord, Tenant, Risk, Information, Digital Identity
Frequently Asked Questions
What is the core focus of this master thesis?
The thesis explores the impact of social media information and digital reputation scores on the assessment of trustworthiness during peer-to-peer transactions, specifically within the rental market.
What are the primary themes discussed?
Central themes include the evolution of trust in the sharing economy, the influence of online profiles on risk perception, and the potential for new reputation platforms to replace traditional financial collateral.
What is the main research question?
The research asks how information derived from social networks and reputation platforms affects the perceived trustworthiness of strangers in peer-to-peer interactions.
Which scientific methodology is utilized?
The study employs a quantitative research method, conducting an online survey with 104 participants to simulate rental scenarios with varying levels of information.
What topics are covered in the main body of the work?
The body covers the theoretical foundations of trust, the development of research hypotheses, a detailed methodological framework, and a comprehensive analysis of the survey results regarding trustworthiness perceptions and deposit demands.
Which keywords best characterize this research?
The research is best described by keywords such as Trust, Reputation, Sharing Economy, Trustworthiness, and Digital Identity.
How does Traity specifically aim to change trust in the digital age?
Traity aims to create an "internet where you can trust everyone" by allowing users to aggregate their reputation data from various sources into a single, verifiable digital passport.
What were the major findings regarding deposit demands?
The study found that while participants perceived tenants as more trustworthy with access to social profiles, this did not significantly translate into reduced deposit demands, as participants largely relied on rule-of-thumb estimates.
Does the research confirm that more information leads to higher trust?
Yes, the data indicates that exposure to social media and Traity profiles leads to significantly higher levels of perceived trustworthiness compared to an e-mail only inquiry.
What are the practical implications suggested by the author?
The author suggests that while reputation platforms can facilitate trust, balancing the benefits of data-driven insights with user privacy and the potential for abuse remains a critical challenge for future development.
- Quote paper
- Markus Bergmann (Author), 2018, To Trust or Not to Trust. Is Reputation the Currency of the Future?, Munich, GRIN Verlag, https://www.grin.com/document/442456
