What if the game had a reputation system?

I've been seening some talk about how PvP can feel bad, some about how its all about PvP, etc. And to be honest, both sides of the argument have validity, so I was thinking if there was a middle ground.

Something where PvP is a bit discouraged, but not unviable, and then It hit me, a rep system. The more you PvP the higher prices you need to pay to vendors in Speranza, the less PvP and the more you only PvE or help other raiders, the lower your prices.

So, the more you PvP, of course you can get the "easy" loot from other raiders, but those who live by the sword die by it, and the harder it is for you to start all over.

Conversely, people who are mainly pacifist have an overall easier time getting geared back up, so its less penalizing not being a murder hobo