E-Commerce Trust-Building under the Involvement of Intermediary Mechanism

Trust risk has become one of the main barriers to online trading. According to the theory studies and e-commerce´s practice, the utilization of intermediary is an effective way to building online trust. This paper establishes an stage game model revolving intermediary organization order to reveal the mechanism of intermediary in trust building. For the sake of finding the equilibrium of the game model above, a corresponding optimal behavior chain of traders is designed. The study shows: the price of digital ID and penalty coefficient to the fraud are two key parameters in the operation of intermediary mechanism; the condition for effective operation of intermediary mechanism is that the price of digital ID is less than or equal to the discount value of honest income expectation in each game stage, and the penalty coefficient to the fraud is less than or equal to appropriate ratio.