Buyers of ‘lemons’: How can a blockchain platform address buyers’ needs in the market for ‘lemons’?

Abstract

Her research interests include blockchain technology and its impact on trust, blockchain-based incentive systems, and digital innovation in financial area (FinTech).

Potential and limits of Blockchain technology for networked businesses

“…Tönnissen et al (2020) also develop a taxonomy but follow the method by Nickerson et al (2013) to analyze Blockchain-based start-ups and tokenbased ecosystems. A mixed qualitative and quantitative method is used by Zavolokina et al (2020) to analyze the information seeking process and to derive Blockchain design requirements.…”

Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals

“…Moreover, researchers indicate that the less buyers know about the seller and the more difficult it is for buyers to assess the product quality, the more likely it is that buyers will use signals to build their own quality expectation. To overcome information asymmetry situations, sellers can use social information cues to send pre-purchase signals about their quality through brand name, advertising, price (Kirmani and Rao 2000;Zavolokina et al 2019), or collective signals of reputation, such as the electronic word of mouth (Amblee and Bui 2011) or expert opinions (Cheung et al 2014). The same principle applies to the relationship of investors and investees in financing decisions.…”

Dealers of Peaches and Lemons: How Can Used Car Dealers Use Trusted Car Data to create value?

“…Even though digitalization in the used car business is not as advanced as it is in other industries [22], experts agree that there are numerous technological opportunities that might disrupt this industry in the near future [23]. Recently, many different blockchain use cases for the car market have been proposed, the most important ones being: optimization of the supply chain process, connected cars and secured vehicle data for used cars [3], [4], [19], [24], [25]. The latter use case has been explored by different researchers: Brousmiche et al [3] propose a vehicle data and process ledger framework that fosters trust building and data sharing between stakeholders.…”

“…Today, such trusted data can be provided by car manufacturers, which collect and store these data in their internal systems. Different researchers successfully addressed the problem of adverse selection in the used car market by introducing a trusted vehicle history [3], [4]. They argue that using trusted car data has the potential to act as an enabler of trusted data, makes the market more transparent for the buyers and therefore leads to fewer fraudulent used car sales.…”