A variational formulation for a trust and reputation system

Abstract

Trust and reputation systems play a pivotal role in modern decentralized environments, fostering cooperation and mitigating risks in various online interactions. This paper introduces a variational formulation approach to model and analyze trust and reputation systems. By formulating trust and reputation as variational problems, this approach offers a novel perspective on understanding the underlying mechanisms governing trust establishment. The variational formulation provides a mathematical framework to determine the equilibrium weighted trust values, taking into account that each trustee tries to maximize its gain, namely the benefit minus the costs. The paper illustrates the applicability of this variational formulation through a pletora of simulations, demonstrating its effectiveness in modeling trust and reputation systems. Insights gained from this approach offer valuable guidance for the design and implementation of more reliable and efficient trust and reputation mechanisms in decentralized environments