Quantifying Failure for Risk Based Decision Making in Digital Business Ecosystem Interactions

Due to technological advancement of the Internet, conducting e-commerce transactions have become a part of our daily lives. In a financial interaction to be carried over the digital business ecosystem domain, it is rational for an agent instigating the interaction to analyse beforehand the possible risk in interacting with any other agent. Doing so would give the instigating agent an idea of direction in which its interaction might head and also help it to make an informed decision of its future course of action with that particular agent. For risk analysis, the instigating agent has to determine beforehand the probability of failure and the possible consequences of failure in interacting with an agent. In this paper, we propose such a methodology by which the instigating agent quantifies the probability of failure beforehand in interacting with an agent according to the demand of its future interaction with it.