Finance and economics | Free exchange

User-rating systems are cut-rate substitutes for a skilful boss

The management of a growing share of workers is outsourced to strangers

IT OFTEN arrives as you stroll from the kerb to your front door. An e-mail with a question: how many stars do you want to give your Uber driver? Rating systems like the ride-hailing firm’s are essential infrastructure in the world of digital commerce. Just about anything you might seek to buy online comes with a crowdsourced rating, from a subscription to this newspaper to a broken iPhone on eBay to, increasingly, people providing services. But people are not objects. As ratings are applied to workers it is worth considering the consequences—for rater and rated.

User-rating systems were developed in the 1990s. The web held promise as a grand bazaar, where anyone could buy from or sell to anyone else. But e-commerce platforms had to create trust. Buyers and sellers needed to believe that payment would be forthcoming, and that the product would be as described. E-tailers like Amazon and eBay adopted reputation systems, in which sellers and buyers gave feedback about transactions. Reputation scores appended to products, vendors and buyers gave users confidence that they were not about to be scammed.

This article appeared in the Finance & economics section of the print edition under the headline "Barely managing"

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