Promoting Less Complex and More Honest Price Negotiations in the Online Used Car Market with Authenticated Data
Journal
Group Decis Negot
Type
journal article
Date Issued
2022-02-17
Author(s)
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 the 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.
Keywords
Information asymmetry
Dishonesty
Negotiation behavior
Authenticated data
Used car market
P2P online negotiations/sales
Volume
31
Start page
419
End page
451
Pages
32
Division(s)
File(s)![Thumbnail Image]()
Name
Promoting Less Complex and More Honest Price Negotiations.pdf
Size
1.13 MB
Format
Adobe PDF
Checksum (MD5)
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