TY - JOUR
T1 - Building a case for trust
T2 - reputation, institutional regulation and social ties in online drug markets
AU - Munksgaard, Rasmus
N1 - Publisher Copyright:
© 2022 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2023
Y1 - 2023
N2 - In illicit online markets, actors are pseudonymous, legal institutions are absent, and predation is ripe. The literature proposes that problems of trust are solved by reputation systems, social ties, and administrative governance, but these are often measured independently or in single platforms. This study takes an eclectic approach, conceiving of trust as an estimate informed by any available evidence. Using transaction size as a proxy for trust I estimate the association between competing sources of trust–mediation, reputation, authentication, and social ties–and transaction value using multilevel regression. Using data from two online drug markets, I find mixed evidence that reputation and authentication are associated with transaction value, whereas results are consistent for social ties. Furthermore, transactions outside the scope of administrative mediation are generally larger. These findings have implications for future research and suggest increased attention should be given to the role of mediation practices and social ties.
AB - In illicit online markets, actors are pseudonymous, legal institutions are absent, and predation is ripe. The literature proposes that problems of trust are solved by reputation systems, social ties, and administrative governance, but these are often measured independently or in single platforms. This study takes an eclectic approach, conceiving of trust as an estimate informed by any available evidence. Using transaction size as a proxy for trust I estimate the association between competing sources of trust–mediation, reputation, authentication, and social ties–and transaction value using multilevel regression. Using data from two online drug markets, I find mixed evidence that reputation and authentication are associated with transaction value, whereas results are consistent for social ties. Furthermore, transactions outside the scope of administrative mediation are generally larger. These findings have implications for future research and suggest increased attention should be given to the role of mediation practices and social ties.
KW - cybercrime
KW - Darkweb
KW - drug markets
KW - illicit markets
KW - illicit online markets
UR - http://www.scopus.com/inward/record.url?scp=85145306689&partnerID=8YFLogxK
U2 - 10.1080/17440572.2022.2156863
DO - 10.1080/17440572.2022.2156863
M3 - Journal article
AN - SCOPUS:85145306689
SN - 1744-0572
VL - 24
SP - 49
EP - 72
JO - Global Crime
JF - Global Crime
IS - 1
ER -