Effects of breach and potential breach: exclusion, ratings, And fees
Christina Ramberg · 2002
Abstract As has been said many times before in this book, an Internet marketplace is dependent on trust in order to attract liquidity. It is crucial to implement disincentives against individual participants behaving in a way that threatens the trust¬ worthiness of the marketplace. Participants may be denied further access to the marketplace for violating the conditions of sale or membership terms. Before such a draconian sanction is usedt there could be other consequences, such as warning other participants against making a deal with the misbehaving participant (rating or blacklisting) or fees to be paid by the misbehaving participant to the marketplace. Furthermore, the marketplace could require that participants be scrutinized before being accepted in the marketplace.