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Is there a market for trusted car data?


Bauer, Ingrid; Zavolokina, Liudmila; Schwabe, Gerhard (2020). Is there a market for trusted car data? Electronic Markets, 30(2):211-225.

Abstract

The used-car trade is characterized by information asymmetries between buyers and sellers leading to uncertainty and distrust,thus causing market inefficiencies. Prior research has shown that blockchain offers a solution: a transparent, trustworthy andverified car history that addresses these issues in the market for ‘lemons’. Yet, whether or not there really is a market for trustedcar data remains an open question. In particular, it is unclear if trusted car data increases transparency in the market for lemons andhow market participants value increased transparency. Hence, through a market game with 50 participants, we explored theeffects of trusted car data on the sales price of the cars, and the relative revenue of buyers and sellers. Additionally, we conductedinterviews with the participants to elicit the perceived customer value. The results show that blockchain enables an increase intransparency and creates value for both buyers and sellers.

Abstract

The used-car trade is characterized by information asymmetries between buyers and sellers leading to uncertainty and distrust,thus causing market inefficiencies. Prior research has shown that blockchain offers a solution: a transparent, trustworthy andverified car history that addresses these issues in the market for ‘lemons’. Yet, whether or not there really is a market for trustedcar data remains an open question. In particular, it is unclear if trusted car data increases transparency in the market for lemons andhow market participants value increased transparency. Hence, through a market game with 50 participants, we explored theeffects of trusted car data on the sales price of the cars, and the relative revenue of buyers and sellers. Additionally, we conductedinterviews with the participants to elicit the perceived customer value. The results show that blockchain enables an increase intransparency and creates value for both buyers and sellers.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Informatics
Dewey Decimal Classification:000 Computer science, knowledge & systems
Scopus Subject Areas:Social Sciences & Humanities > Business and International Management
Social Sciences & Humanities > Economics and Econometrics
Physical Sciences > Computer Science Applications
Social Sciences & Humanities > Marketing
Social Sciences & Humanities > Management of Technology and Innovation
Language:English
Date:1 June 2020
Deposited On:18 Sep 2019 15:34
Last Modified:29 Jul 2020 11:20
Publisher:Springer
ISSN:1019-6781
OA Status:Closed
Free access at:Publisher DOI. An embargo period may apply.
Publisher DOI:https://doi.org/10.1007/s12525-019-00368-5
Official URL:https://link.springer.com/article/10.1007%2Fs12525-019-00368-5
Other Identification Number:merlin-id:18299

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