Abstracts

Brinkmann, Ulrich and Seifert, Matthias. 'Face to Interface': Zum Problem der Vertrauenskonstitution im Internet am Beispiel von elektronischen Auktionen ('Face to Interface' - The establishment of trust in the internet - The case of e-auctions). . [added May 30, 03]

Abstract: In this article the importance of trust in e-commerce business has been examined. Institutionalizing processes helping to establish trust are outlined focusing on an internet auction market. First, trust is defined as a multidimensional concept. Further on, internet transactions are described as a special case of e-commerce from the perspective of the trust phenomenon: both transaction partners lack information about competence, integrity, and benevolence of the other. The seller and buyer in an internet auction market do not share experiences, as they have not met before. Many uncertainties exist about the exchanged product and the modes of transaction. The internet auction market eBay was analyzed to verify empirically that trust is necessary to overcome the risks and imponderabilities of transactions. It was proven that a loss of trustworthiness reduces the chances of participating successfully in the online trading community. Additionally it was discovered that the institutionalizing of a feedback mechanism is the basis of a high trust context and severe control- and regulation mechanisms. Trust is therefore the necessary basis for internet transaction markets and reduces the transaction costs.