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Erschienen in: Review of Industrial Organization 2/2021

23.03.2020

Cheating in Ranking Systems

verfasst von: Lihi Dery, Dror Hermel, Artyom Jelnov

Erschienen in: Review of Industrial Organization | Ausgabe 2/2021

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Abstract

Consider a software application that pays a commission fee to be sold on an on-line platform (e.g., Google Play). The sales depend on the applications’ customer rankings. Therefore, developers have an incentive to dishonestly promote their application’s ranking, e.g., by faking positive customer reviews. The platform detects dishonest behavior (cheating) with some probability, and then decides whether to ban the application. We provide an analysis and find the equilibrium behaviors of both the application (cheat or not) and the platform (setting the commission fee). We provide insights into how the platform’s detection accuracy affects the incentives of the application’s developers.

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Fußnoten
2
An application is an experience good. The users assume that high-rated apps are ones with which other users have had a positive experience. If an app receives a high rank by cheating, the user might be disappointed from his experience with the app.
 
3
The platform maximizes its expected utility. The technicalities are characterized in Proposition 3 in the “Appendix”.
 
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Metadaten
Titel
Cheating in Ranking Systems
verfasst von
Lihi Dery
Dror Hermel
Artyom Jelnov
Publikationsdatum
23.03.2020
Verlag
Springer US
Erschienen in
Review of Industrial Organization / Ausgabe 2/2021
Print ISSN: 0889-938X
Elektronische ISSN: 1573-7160
DOI
https://doi.org/10.1007/s11151-020-09754-2

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