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Is there a market for trusted car data?

  • Ingrid BauerEmail author
  • Liudmila Zavolokina
  • Gerhard Schwabe
Research Paper
Part of the following topical collections:
  1. Potential and Limits of Blockchain Technology for Networked Businesses

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 

JEL classification

O33 O39 D82 

Notes

Supplementary material

12525_2019_368_MOESM1_ESM.docx (25 kb)
ESM 1 (DOCX 25.3 kb)

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Copyright information

© Institute of Applied Informatics at University of Leipzig 2019

Authors and Affiliations

  1. 1.Department of Informatics, Information Management Research GroupUniversity of ZurichZurichSwitzerland

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