Ask HN: How much transparency for an online reputation system?
At Dawdle, we have a substantively different approach to how we evaluate sellers versus eBay and Amazon. At first, we didn't want to rate sellers at all, given that we have a 100% money back guarantee like StubHub. However, it became clear that users just weren't comfortable with no seller ratings given the type of merchandise on Dawdle - new and used video games, systems, and accessories.
So when we decided that we needed to have a seller rating, we tried to figure out the best approach. We thought that eBay/Amazon-style ratings aren't the greatest because it's all about accumulation of points (+/- 1, similar to Karma here on HN), where each additional point has diminishing value. So we decided just to start with buyer feedback, but layer a ton of other things on top of that. Thing is, we don't say what all those layers are: http://www.dawdle.com/help/index.php/sell-feedback/
We wanted to make sure that people weren't setting up shill accounts and inflating their ratings, and we like how Google gives guidance but not the exact algorithm for their rankings. The general idea is to encourage good behavior and to allow us some leeway to fix things as we see issues.
So what do you think? Should we tell people how we calculate it so that everyone knows it's on the up and up and we're not secretly favoring people? Or can we get people to try us out knowing that they're on a much more level playing field as a new user versus older users? (We're going to make it even easier to pick what seller you're buying from - you couldn't in our beta, just like StubHub doesn't tell you who the ultimate seller is - and these sorts of things are very important to both buyers and sellers.)