earticle

영어

This paper theoretically studied the issue of trust in E-Commerce business. Firstly, we established a dynamic game model to analyze conditions required for reaching a long-term equilibrium of trust, by introducing the concept of ESS equilibrium. Secondly, we designed a diffusion mechanism of trust with an algorithm, which helped us understand the process of how the stable equilibrium of trust would be reached. Our findings are as follows: (1) under unfavorable conditions like weak trust incentives, distrust in E-Commerce business is prevalent, even after a trust evaluating system has been established; (2) some factors, including payoff difference between honest traders and dishonest traders, the number of traders choosing the trust strategy and convenience of information exchange between traders, determine the diffusion process of trust in this business. With regard to the findings aforementioned and the sustainable development of E-Commerce business in China, we provide some policy suggestions, like increasing comparative advantage in payoffs received by honest traders, reinforcing regulation on entry permission, and investing more in technology or devices to promote information exchange between traders.