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Promoting less complex and more honest price negotiations in the online used car market with authenticated data


Engelmann, Andreas; Bauer, Ingrid; Dolata, Mateusz; Nadig, Michael; Schwabe, Gerhard (2022). Promoting less complex and more honest price negotiations in the online used car market with authenticated data. Group Decision and Negotiation, 31:419-451.

Abstract

Online peer-to-peer (P2P) sales of used and or high-value goods are gaining more and more relevance today. However, since potential buyers cannot physically examine product quality during online sales, information asymmetries and consequently uncertainty and mistrust that already exist in offline sales are exacerbated in online markets. Authenticated data platforms have been proposed to solve these problems by providing authenticated data about the negotiation object, integrating it into text-based channels secured by IT. Yet, we know little about the dynamics of online negotiations today and the impact of the introduction of authenticated data on online negotiation behaviors.
We address this research gap based on two experimental studies along with the example of online used-car trade. We analyze users’ communicative and strategic actions in current P2P chat-based negotiations and examine how the introduction of authenticated data affects these behaviors using a conceptional model derived from literature. Our results show that authenticated data can promote less complex negotiation processes and more honest communication behavior between buyers and sellers. Further, the results indicate that chats with the availability of authenticated data can positively impact markets with information asymmetries. These insights provide valuable contributions for academics interested in the dynamics of online negotiations and the effects of authenticated data in text-based online negotiations. In addition, providers of trade platforms who aim to advance their P2P sales platforms benefit by achieving a competitive advantage and a higher number of customers.

Abstract

Online peer-to-peer (P2P) sales of used and or high-value goods are gaining more and more relevance today. However, since potential buyers cannot physically examine product quality during online sales, information asymmetries and consequently uncertainty and mistrust that already exist in offline sales are exacerbated in online markets. Authenticated data platforms have been proposed to solve these problems by providing authenticated data about the negotiation object, integrating it into text-based channels secured by IT. Yet, we know little about the dynamics of online negotiations today and the impact of the introduction of authenticated data on online negotiation behaviors.
We address this research gap based on two experimental studies along with the example of online used-car trade. We analyze users’ communicative and strategic actions in current P2P chat-based negotiations and examine how the introduction of authenticated data affects these behaviors using a conceptional model derived from literature. Our results show that authenticated data can promote less complex negotiation processes and more honest communication behavior between buyers and sellers. Further, the results indicate that chats with the availability of authenticated data can positively impact markets with information asymmetries. These insights provide valuable contributions for academics interested in the dynamics of online negotiations and the effects of authenticated data in text-based online negotiations. In addition, providers of trade platforms who aim to advance their P2P sales platforms benefit by achieving a competitive advantage and a higher number of customers.

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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 > General Decision Sciences
Social Sciences & Humanities > Arts and Humanities (miscellaneous)
Social Sciences & Humanities > General Social Sciences
Social Sciences & Humanities > Strategy and Management
Social Sciences & Humanities > Management of Technology and Innovation
Scope:Discipline-based scholarship (basic research)
Language:English
Date:April 2022
Deposited On:25 Apr 2023 11:26
Last Modified:29 Jun 2024 01:36
Publisher:Springer
ISSN:0926-2644
OA Status:Hybrid
Free access at:Publisher DOI. An embargo period may apply.
Publisher DOI:https://doi.org/10.1007/s10726-021-09773-8
Other Identification Number:merlin-id:21773
  • Content: Published Version
  • Language: English
  • Licence: Creative Commons: Attribution 4.0 International (CC BY 4.0)