  The concept of reputation is widely used as a measure of trustworthiness
based on ratings from members in a community. The adoption of reputation
systems, however, relies on their ability to capture the actual trustworthiness
of a target. Several reputation models for aggregating trust information have
been proposed in the literature. The choice of model has an impact on the
reliability of the aggregated trust information as well as on the procedure
used to compute reputations. Two prominent models are flow-based reputation
(e.g., EigenTrust, PageRank) and Subjective Logic based reputation. Flow-based
models provide an automated method to aggregate trust information, but they are
not able to express the level of uncertainty in the information. In contrast,
Subjective Logic extends probabilistic models with an explicit notion of
uncertainty, but the calculation of reputation depends on the structure of the
trust network and often requires information to be discarded. These are severe
drawbacks.
  In this work, we observe that the `opinion discounting' operation in
Subjective Logic has a number of basic problems. We resolve these problems by
providing a new discounting operator that describes the flow of evidence from
one party to another. The adoption of our discounting rule results in a
consistent Subjective Logic algebra that is entirely based on the handling of
evidence. We show that the new algebra enables the construction of an automated
reputation assessment procedure for arbitrary trust networks, where the
calculation no longer depends on the structure of the network, and does not
need to throw away any information. Thus, we obtain the best of both worlds:
flow-based reputation and consistent handling of uncertainties.
