The analysis on credit hypes in C-C e-commerce market in China

The rapid growth of C-C e-commerce in China attracts more and more people entering the market. In order to achieve a desired credit level and create enough transactions in a short time, many sellers choose to manipulate their reputation. This paper analyses the three methods of credit hypes exist in China: low value transaction, colluding transaction, manipulating in agreement with professional manipulator. Through establishing the model of seller's expected earning with hype probability under the current credit rating mechanism, it concluded that the sellers with low credit levels are more likely to manipulate its credit level through entering an agreement with professional manipulator and goods with low-value are the best choice of the manipulator and the seller to forge C-C transaction. So this paper proposes that newcomers and sellers with low credit level shall be the focus of supervision on credit hypes, and repeated transaction with low-valued goods is the key indicator for judging the credit hypes.