Reputationbased trust mechanisms provide an important way to solve the behavior trustworthiness problems in selforganized iVCE environments.The existing reputation models are deficient in the ability of dynamically adapting to the strategically altering behavior and the efficiently aggregating reputation information. Efficient mechanisms to stimulate honest and active collaboration are also needed. In this paper, a penaltyincentivemechanismbased reputation management model PERep is proposed.According to the behavior characteristics and reputation status, collaboration or departure can be distinguished and departure will be punished. Its distributed realization is presented. Simulation results show that PERep has the ability of exactly distinguishing honest trade and malicious behavior,prominently improves the autonomic elements’ enthusiasm to be honest, and greatly deduces the harm of malicious behavior.