Is there a market for trusted car data?
Ingrid Bauer (),
Liudmila Zavolokina () and
Gerhard Schwabe ()
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Ingrid Bauer: University of Zurich
Liudmila Zavolokina: University of Zurich
Gerhard Schwabe: University of Zurich
Electronic Markets, 2020, vol. 30, issue 2, No 4, 225 pages
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 and verified car history that addresses these issues in the market for ‘lemons’. Yet, whether or not there really is a market for trusted car data remains an open question. In particular, it is unclear if trusted car data increases transparency in the market for lemons and how market participants value increased transparency. Hence, through a market game with 50 participants, we explored the effects of trusted car data on the sales price of the cars, and the relative revenue of buyers and sellers. Additionally, we conducted interviews with the participants to elicit the perceived customer value. The results show that blockchain enables an increase in transparency and creates value for both buyers and sellers.
Keywords: Blockchain; Market for lemons; Value creation; Data and information products; Data-driven business models (search for similar items in EconPapers)
JEL-codes: O33 O39 D82 (search for similar items in EconPapers)
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