Reputation System as a Digital Socio-Economic Institution: Willingness to Sell in Online Markets

Abstract

This study examines the features and big data consisting of digital trace records from economic actions within Bukalapak's reputation system and their impact on the willingness to sell (WTS) electronic products. Digital mixed content analysis was used to analyze the rapidly evolving digital-social-based economic institution infrastructure. Data were collected, analyzed, and visualized using Python and analyzed using the concepts of new economic institutions and WTS. The findings indicate that the reputation system is a formal element comprising algorithms, rules, scripts, and patterns. This system facilitates social processes through feedback mechanisms in product descriptions, comments, reviews, ratings, and badges, which generate informal elements such as norms, trust, and symbolic values. These two elements are interconnected into an institutional framework whose function is to ensure that the market, characterized by high levels of anonymous transactions, uncertainty, and asymmetric information, can remain stable and meet the expectations of the actors involved.