The Effect of Introducing Competitive System into Reputation Market on Information Improvement

The third party can improve the cooperative efficiency among enterprises by providing correct reputation information of these enterprises. This paper discussed the influence on cooperative efficiency caused by some behaviors of the third party. The third party may accept bribes from enterprises which cheat in the process of cooperating with another enterprise and promise to conceal their bad reputations. And it may also solicit bribes from honest enterprises in the process of cooperation, and threaten to record dishonest reputation information if they don't pay the bribes. By setting up a game theory model, we analyze how these behaviors influence the reputation information. Then, we discuss the governance effect of the competition mechanism and draw a conclusion that the introduction of competition on the reputation market can restrict the behavior of the third party and improve the reputation information. Based on the improved information, the cooperative efficiency will be enhanced accordingly.