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Is there a market for trusted car usage data?

Bauer, I., Zavolokina, L., & Schwabe, G.

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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