A Reputation System for Market Security and Equity

TL;DR

This paper proposes a reputation system designed to enhance market security and fairness by stabilizing wealth distribution and introducing new metrics for assessing market equity.

Contribution

It introduces a novel reputation system and metrics, including a modified Gini coefficient and weighted Pearson, to optimize market security and equity.

Findings

Reputation system stabilizes wealth distribution.

Modified Gini metric accounts for production quality.

Weighted Pearson used for optimization.

Abstract

We simulate a reputation system in a market to optimise the balance between market security and market equity. We introduce a method of using a reputation system that will stabilise the distribution of wealth in a market in a fair manner. We also introduce metrics of a modified Gini that takes production quality into account, a way to use a weighted Pearson as a tool to optimise balance.