Abstract—The economic significance of reputation in the
context of a proposed distribution of reputation scores is
discussed. Proposals are made to use the distributional
properties of reputation for prediction and simulation. A
method of expressing reputation numerically is presented as a
weighted average of sentiment scores derived from multiple
contents within a given time window. Given a sufficiently
extensive reputation time series, averaging induces a marked
clustering near to a modal value. The proposed bi-exponential
distribution models this clustering better than other candidate
distributions. The economic effects of a specific reputational
shock is examined to illustrate both its severity, persistence and
subsequent consequences.
Index Terms—Reputation, probability distribution,
simulation, goodness-of-fit, biexponential.
P. Mitic is with the Dept. of Computer Science, University College
London, Gower Street, London WC1E 6BT (e-mail: p.mitic@ucl.ac.uk).
Cite: Peter Mitic, "Reputation: Probability Distributions, Prediction and Simulation," International Journal of Trade, Economics and Finance vol.13, no.6, pp. 87-193, 2022.
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