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The Many Faces of Reputation:

              Towards a discipline of Web 2.0
              reputation system design

              Prof. Chris Dellarocas
              Robert H. Smith School of Business
              University of Maryland
              cdell@umd.edu

                Copyright © C. Dellarocas 2008-09




Suddenly everything Web 2.0 became so sexy…




                 Copyright © C. Dellarocas 2008-09




                                                     1
Except, perhaps, reputation systems…



                     RepuNomics

                     How Online Reputation
                        Enables Markets
                      Sustains Communities
                                                             This
                          and Creates
                         New Business
                                                            book
                         Opportunities
                                                           does not
                                                             exist


                       Copyright © C. Dellarocas 2008-09




But reputation systems are everywhere

 eCommerce
    eBay
    Amazon
    Epinions
 Web 2.0
    Yelp
    Slashdot
 Crowdsourcing
    Yahoo! Answers
    iStockPhoto
 Gaming
    Xbox Live



                       Copyright © C. Dellarocas 2008-09




                                                                      2
Reputation Systems
         are the Unsung Heroes
               of the Web




                  Copyright © C. Dellarocas 2008-09




Outline of this talk

  Reputation Systems Serve Business Objectives

  Four areas where practice runs ahead of
  research

  Our challenge: Developing a rigorous discipline
  of real-life reputation system design


                  Copyright © C. Dellarocas 2008-09




                                                      3
Some Definitions

  Reputation = a summary of one’s past actions
      defined within the context of a specific community


  Reputation system = a system that mediates
  and automates the process of assessing one’s
  reputation
      Keeps track of a user’s actions
      Aggregates and displays summary statistics


                      Copyright © C. Dellarocas 2008-09




Bird’s eye view of a reputation system


(Inter)
actions                                        Inputs



                                           Aggregation



                                              Outputs
          Users      Artifacts

COMMUNITY


                      Copyright © C. Dellarocas 2008-09




                                                           4
Reputation Systems
              serve a variety of
             Business Objectives




                        Copyright © C. Dellarocas 2008-09




Why do communities need reputation
systems?
 Trust
    Encourage “good” and discourage “bad” behavior
 Quality
    Provide incentives for quality contributions
    Recognize best contributors
 Matching and Filtering
    Assist users in finding suitable partners
    Reduce information overload
 Participation and loyalty
    Give user reasons to join and stay in your community



                        Copyright © C. Dellarocas 2008-09




                                                            5
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    6
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    7
Copyright © C. Dellarocas 2008-09




Four examples

                Trust             Quality              Filtering   Loyalty


eBay            +++               +                    +           ++
Amazon          ++                +++                  +           ++
Yelp            ++                +++                  +++         +++
Yahoo!Answers   ++                ++                   +           +++




                        Copyright © C. Dellarocas 2008-09




                                                                             8
The design space of
            Reputation Systems
                is very rich




                   Copyright © C. Dellarocas 2008-09




Four dimensions of reputation system design
where practice runs ahead of research

     What inputs should be solicited
1.
     What outputs should be presented
2.
     How transparent should the rules be
3.
     How should reputation evolve over time
4.




                   Copyright © C. Dellarocas 2008-09




                                                       9
What inputs should be solicited?

 What internal actions to keep track of
 What external feedback to solicit
 Ratings of artifacts vs. ratings of people




                  Copyright © C. Dellarocas 2008-09




                  Copyright © C. Dellarocas 2008-09




                                                      10
Determining inputs

  Perform an audit of your system
  List all actions a user can take
  Assess how each action relates to each of the
  four classes of objectives
  Track/report actions that:
    you want to encourage/discourage
    provide the most information related to one or more of
    your key objectives


                    Copyright © C. Dellarocas 2008-09




A story of a site that got it wrong:
Consumating.com




                    Copyright © C. Dellarocas 2008-09




                                                             11
An interesting question:
Should you allow ratings of users….

… separately from the artifacts they create?

  Pluses:
    Makes a person feel like a person… which might
    increase site loyalty
  Minuses:
    Can distract from quality of one’s work
    Might encourage personal attacks


                    Copyright © C. Dellarocas 2008-09




                    Copyright © C. Dellarocas 2008-09




                                                        12
Four dimensions of reputation system design
where practice runs ahead of research

      What inputs should be solicited
1.
      How outputs should be presented
2.
      How transparent should the rules be
3.
      How should reputation evolve over time
4.




                    Copyright © C. Dellarocas 2008-09




What outputs should be presented?

     Simple statistics
     Star ratings
     Score
     Named levels
     Achievement badges
     Social network



                    Copyright © C. Dellarocas 2008-09




                                                        13
Copyright © C. Dellarocas 2008-09




Simple Statistics



    Copyright © C. Dellarocas 2008-09




                                        14
Statistics




 Score
             Copyright © C. Dellarocas 2008-09




 Social
Network




             Copyright © C. Dellarocas 2008-09




                                                 15
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    16
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    17
Copyright © C. Dellarocas 2008-09




To what extent should the system allow
comparison across users?

 Display of relative performance statistics
 Top N lists
 “Leaderboards”




                  Copyright © C. Dellarocas 2008-09




                                                      18
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    19
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    20
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    21
To compare or not to compare?

 Pluses
    Increases incentives to contribute
    Enhances filtering role of reputation
 Minuses
    Instills a culture of competition
    Obsession with rankings might lead to manipulative,
    disruptive behavior
    Low ranked users might be discouraged and exit


                     Copyright © C. Dellarocas 2008-09




A cautionary tale

 Digg.com




                     Copyright © C. Dellarocas 2008-09




                                                          22
How you display reputation information
affects the spirit of your community

                                                            COMPETITIVE
 CORDIAL




               Named
                                                              Ranking
 Statistical   Levels          Point-based score
                                                            Leaderboards
 evidence      Badges


 Reputation system design must be consistent
 with the community’s overall culture

                        Copyright © C. Dellarocas 2008-09




Some ideas

 Implement multiple ways of ranking users
     No single measure that people obsess on
     Allows users with different qualities to feel good
     Particularly relevant in systems where matching and
     filtering is an important objective




                        Copyright © C. Dellarocas 2008-09




                                                                           23
Copyright © C. Dellarocas 2008-09




Four dimensions of reputation system design
where practice runs ahead of research

     What inputs should be solicited
1.
     What outputs should be presented
2.
     How transparent should the rules be
3.
     How should reputation evolve over time
4.




                   Copyright © C. Dellarocas 2008-09




                                                       24
How transparent should be the aggregation
rules?

  Transparency breeds trust

… but also facilitates gaming




                  Copyright © C. Dellarocas 2008-09




                  Copyright © C. Dellarocas 2008-09




                                                      25
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    26
Copyright © C. Dellarocas 2008-09




Four dimensions of reputation system design
where practice runs ahead of research

     What inputs should be solicited
1.
     What outputs should be presented
2.
     How transparent should the rules be
3.
     How should reputation evolve over time
4.




                  Copyright © C. Dellarocas 2008-09




                                                      27
How should reputation evolve over time?

 Accumulate and grow
 Decay and refresh

 Tradeoffs
   Accumulation breeds complacency
   Accumulation discourages new entrants
  BUT
   Accumulation promotes loyalty and lock-in


                   Copyright © C. Dellarocas 2008-09




                Accumulation




Decay and Refresh  Copyright © C. Dellarocas 2008-09




                                                       28
A case study:
    Yelp




 Copyright © C. Dellarocas 2008-09




 Copyright © C. Dellarocas 2008-09




                                     29
Copyright © C. Dellarocas 2008-09




Copyright © C. Dellarocas 2008-09




                                    30
Copyright © C. Dellarocas 2008-09




      The challenge:
Mapping Business Objectives
         to Design




         Copyright © C. Dellarocas 2008-09




                                             31
Observation #1: Everything should be driven
from a clear understanding of objectives
 Trust building/Community Policing
 Incentives for Quality
 Matching and Filtering
 Site Loyalty

 It is important for the designer to be very clear with
 respect to how these goals are prioritized
 It is important to understand how every aspect of design
 affects each of these goals


                        Copyright © C. Dellarocas 2008-09




Observation #2: The design of a reputation
system can affect a community’s culture

                                                            COMPETITIVE
 CORDIAL




               Named
                                                              Ranking
 Statistical   Levels          Point-based score
                                                            Leaderboards
 evidence      Badges


 Reputation system design must be consistent
 with the community’s overall culture

                        Copyright © C. Dellarocas 2008-09




                                                                           32
Observation #3: Intangible aspects of
reputation matter

 Users care about their reputation beyond the
 tangible benefits it confers to them
 Reputation as pure status
    Status is zero-sum
    Users who are not recognized might get upset
    So, introduction of a reputation system might make
    some users worse off and cause them to leave




                    Copyright © C. Dellarocas 2008-09




Observation #4: A reputation system can be
a site’s competitive weapon

 A way to lock-in users to our site

 Lock-in properties of reputation system can
 sometimes be in conflict with its other objectives

 Understanding the design of competitors’
 reputation mechanisms matters


                    Copyright © C. Dellarocas 2008-09




                                                         33
In summary

 Much of what we know about reputation system
 design in Web 2.0 communities is still anecdotal

 We need research-driven guidelines on how to
 design such systems

 A lot of open areas where theoretical and
 experimental work needs to be done

                    Copyright © C. Dellarocas 2008-09




In the meantime…
 Reputation systems designers will be the poor
 lonesome cowboys of the Web
 Not necessarily such a bad place to be (hey, it can
 get you to places like Gargonza)




                    Copyright © C. Dellarocas 2008-09




                                                        34

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The Many Faces of Reputation: Towards a discipline of Web 2.0 reputation system design

  • 1. The Many Faces of Reputation: Towards a discipline of Web 2.0 reputation system design Prof. Chris Dellarocas Robert H. Smith School of Business University of Maryland cdell@umd.edu Copyright © C. Dellarocas 2008-09 Suddenly everything Web 2.0 became so sexy… Copyright © C. Dellarocas 2008-09 1
  • 2. Except, perhaps, reputation systems… RepuNomics How Online Reputation Enables Markets Sustains Communities This and Creates New Business book Opportunities does not exist Copyright © C. Dellarocas 2008-09 But reputation systems are everywhere eCommerce eBay Amazon Epinions Web 2.0 Yelp Slashdot Crowdsourcing Yahoo! Answers iStockPhoto Gaming Xbox Live Copyright © C. Dellarocas 2008-09 2
  • 3. Reputation Systems are the Unsung Heroes of the Web Copyright © C. Dellarocas 2008-09 Outline of this talk Reputation Systems Serve Business Objectives Four areas where practice runs ahead of research Our challenge: Developing a rigorous discipline of real-life reputation system design Copyright © C. Dellarocas 2008-09 3
  • 4. Some Definitions Reputation = a summary of one’s past actions defined within the context of a specific community Reputation system = a system that mediates and automates the process of assessing one’s reputation Keeps track of a user’s actions Aggregates and displays summary statistics Copyright © C. Dellarocas 2008-09 Bird’s eye view of a reputation system (Inter) actions Inputs Aggregation Outputs Users Artifacts COMMUNITY Copyright © C. Dellarocas 2008-09 4
  • 5. Reputation Systems serve a variety of Business Objectives Copyright © C. Dellarocas 2008-09 Why do communities need reputation systems? Trust Encourage “good” and discourage “bad” behavior Quality Provide incentives for quality contributions Recognize best contributors Matching and Filtering Assist users in finding suitable partners Reduce information overload Participation and loyalty Give user reasons to join and stay in your community Copyright © C. Dellarocas 2008-09 5
  • 6. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 6
  • 7. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 7
  • 8. Copyright © C. Dellarocas 2008-09 Four examples Trust Quality Filtering Loyalty eBay +++ + + ++ Amazon ++ +++ + ++ Yelp ++ +++ +++ +++ Yahoo!Answers ++ ++ + +++ Copyright © C. Dellarocas 2008-09 8
  • 9. The design space of Reputation Systems is very rich Copyright © C. Dellarocas 2008-09 Four dimensions of reputation system design where practice runs ahead of research What inputs should be solicited 1. What outputs should be presented 2. How transparent should the rules be 3. How should reputation evolve over time 4. Copyright © C. Dellarocas 2008-09 9
  • 10. What inputs should be solicited? What internal actions to keep track of What external feedback to solicit Ratings of artifacts vs. ratings of people Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 10
  • 11. Determining inputs Perform an audit of your system List all actions a user can take Assess how each action relates to each of the four classes of objectives Track/report actions that: you want to encourage/discourage provide the most information related to one or more of your key objectives Copyright © C. Dellarocas 2008-09 A story of a site that got it wrong: Consumating.com Copyright © C. Dellarocas 2008-09 11
  • 12. An interesting question: Should you allow ratings of users…. … separately from the artifacts they create? Pluses: Makes a person feel like a person… which might increase site loyalty Minuses: Can distract from quality of one’s work Might encourage personal attacks Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 12
  • 13. Four dimensions of reputation system design where practice runs ahead of research What inputs should be solicited 1. How outputs should be presented 2. How transparent should the rules be 3. How should reputation evolve over time 4. Copyright © C. Dellarocas 2008-09 What outputs should be presented? Simple statistics Star ratings Score Named levels Achievement badges Social network Copyright © C. Dellarocas 2008-09 13
  • 14. Copyright © C. Dellarocas 2008-09 Simple Statistics Copyright © C. Dellarocas 2008-09 14
  • 15. Statistics Score Copyright © C. Dellarocas 2008-09 Social Network Copyright © C. Dellarocas 2008-09 15
  • 16. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 16
  • 17. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 17
  • 18. Copyright © C. Dellarocas 2008-09 To what extent should the system allow comparison across users? Display of relative performance statistics Top N lists “Leaderboards” Copyright © C. Dellarocas 2008-09 18
  • 19. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 19
  • 20. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 20
  • 21. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 21
  • 22. To compare or not to compare? Pluses Increases incentives to contribute Enhances filtering role of reputation Minuses Instills a culture of competition Obsession with rankings might lead to manipulative, disruptive behavior Low ranked users might be discouraged and exit Copyright © C. Dellarocas 2008-09 A cautionary tale Digg.com Copyright © C. Dellarocas 2008-09 22
  • 23. How you display reputation information affects the spirit of your community COMPETITIVE CORDIAL Named Ranking Statistical Levels Point-based score Leaderboards evidence Badges Reputation system design must be consistent with the community’s overall culture Copyright © C. Dellarocas 2008-09 Some ideas Implement multiple ways of ranking users No single measure that people obsess on Allows users with different qualities to feel good Particularly relevant in systems where matching and filtering is an important objective Copyright © C. Dellarocas 2008-09 23
  • 24. Copyright © C. Dellarocas 2008-09 Four dimensions of reputation system design where practice runs ahead of research What inputs should be solicited 1. What outputs should be presented 2. How transparent should the rules be 3. How should reputation evolve over time 4. Copyright © C. Dellarocas 2008-09 24
  • 25. How transparent should be the aggregation rules? Transparency breeds trust … but also facilitates gaming Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 25
  • 26. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 26
  • 27. Copyright © C. Dellarocas 2008-09 Four dimensions of reputation system design where practice runs ahead of research What inputs should be solicited 1. What outputs should be presented 2. How transparent should the rules be 3. How should reputation evolve over time 4. Copyright © C. Dellarocas 2008-09 27
  • 28. How should reputation evolve over time? Accumulate and grow Decay and refresh Tradeoffs Accumulation breeds complacency Accumulation discourages new entrants BUT Accumulation promotes loyalty and lock-in Copyright © C. Dellarocas 2008-09 Accumulation Decay and Refresh Copyright © C. Dellarocas 2008-09 28
  • 29. A case study: Yelp Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 29
  • 30. Copyright © C. Dellarocas 2008-09 Copyright © C. Dellarocas 2008-09 30
  • 31. Copyright © C. Dellarocas 2008-09 The challenge: Mapping Business Objectives to Design Copyright © C. Dellarocas 2008-09 31
  • 32. Observation #1: Everything should be driven from a clear understanding of objectives Trust building/Community Policing Incentives for Quality Matching and Filtering Site Loyalty It is important for the designer to be very clear with respect to how these goals are prioritized It is important to understand how every aspect of design affects each of these goals Copyright © C. Dellarocas 2008-09 Observation #2: The design of a reputation system can affect a community’s culture COMPETITIVE CORDIAL Named Ranking Statistical Levels Point-based score Leaderboards evidence Badges Reputation system design must be consistent with the community’s overall culture Copyright © C. Dellarocas 2008-09 32
  • 33. Observation #3: Intangible aspects of reputation matter Users care about their reputation beyond the tangible benefits it confers to them Reputation as pure status Status is zero-sum Users who are not recognized might get upset So, introduction of a reputation system might make some users worse off and cause them to leave Copyright © C. Dellarocas 2008-09 Observation #4: A reputation system can be a site’s competitive weapon A way to lock-in users to our site Lock-in properties of reputation system can sometimes be in conflict with its other objectives Understanding the design of competitors’ reputation mechanisms matters Copyright © C. Dellarocas 2008-09 33
  • 34. In summary Much of what we know about reputation system design in Web 2.0 communities is still anecdotal We need research-driven guidelines on how to design such systems A lot of open areas where theoretical and experimental work needs to be done Copyright © C. Dellarocas 2008-09 In the meantime… Reputation systems designers will be the poor lonesome cowboys of the Web Not necessarily such a bad place to be (hey, it can get you to places like Gargonza) Copyright © C. Dellarocas 2008-09 34