Credit Rating System in C2C E-Commerce: Verification and Improvement of Existent Systems with Game Theory

Abstract

China C2C e-Commerce has developed at high speed during recent years. Whether the credit rating systems of C2C e-Commerce is rational or not directly influences its development as the systems is a key way for risk-averse. This paper analyzes the C2C users’ fraud behavior with repeated game theory, checks the validity of existent C2C e-Commerce credit rating systems, especially the new one applied in Baidu “Youa” C2C e-Commerce platform. Finally some strategies that can be adopted to improve the systems are pointed out.