Optimal control of an online reputation dynamic feedback incentive model

The online reputation evaluation problem is an urgent issue in global business that makes use of e-commerce. However, in most online reputation evaluation systems, the lack of incentive mechanisms to attract online traders to submit feedback voluntarily has been a bottleneck. Thus, it is difficult to ensure that the feedback received is reliable. Furthermore, it may not even be achievable to receive a continuous inflow of feedbacks. This paper presents an online reputation dynamic feedback incentive (DFI) model in the form of an optimal control problem. Based on dynamic properties of reputation evaluation, three cases of the DFI model over a long-term period are considered. Our study shows that the establishment of an effective feedback incentive mechanism is a way to solve the bottleneck of online reputation evaluation systems. Finally, a case study is carried out so as to illustrate the effectiveness of the approach.