Analysis Based On Dynamic Games And Study On Honesty Behavior Of C2C Commerce In China

C to C Electronic Commerce has been developing very fast in recent years in China. The development of e-commerce has facilitated the information sharing between the operator and consumer. However,unlike dealing in the traditional market, the operator issues the false information in e-commerce market and make the conditions of information asymmetry becoming more seriously. The problems of trust that result from individual uncertainty, the fictitious and open Internet impenetrate the whole of trade process influence the development of EC market. Trace to its theoretic source, information asymmetry is one of main reasons. Some consumers may not make C2C trasactions due to the much more information asymmetric and frequent occurence of web cheating behavior. In a word, it is an important subject on studying E-Commerce management that discusses the problems of trust and reduces the degree of information asymmetry for C2C E-Commerce.Begining in outlining the concept and classification of online shopping, this dissertation gives the detailed description of C2C transactions and characteristics of the process with taking Taobao (C2C E-business websites) as a typical example. Then we elaborate specifically on the development of the current status of the C2C e-business in China, and point out that the current C2C transactions exist a variety of trust questions. According to the actual transactions of C2C in China, an analysis by establishing corresponding dynamic game of complete but imperfect information model is given. The Equilibrium outcome of model is used to explain and discuss the current C2C transactions how to choose the best behavior in C2C market. We have reached a conclusion that as long as C2C websites' rules and measures can be effectively implemented, the dealers will choose honest behavior to carry out transactions. Finally, the cause of information asymmetry and the function of reputation system in online shopping is analyzed. Many reputation systems limitations of the most online website are analyzed, and the corresponding counter measures are given. To sum up the above analysis, a new reputation evaluation system of electronic commerce is designed based on the credit evaluation system of the C2C electronic commerce sites. The goal is to establish a set of credit evaluation system that more comprehensive, accurately reflects the behavior characteristic of the C2C transaction. It aims at providing helps to prevent the transaction side from cheating, and to establish a C2C electronic trade environment of good faith.