Florian Hawlitschek

Trust in the Sharing Economy

Trust has been in the focus of research on business-to-consumer (B2C) e-commerce in the last decade. The rise of consumer-to-consumer (C2C) markets in the context of the sharing economy, however, has posed new challenges and questions regarding the dimensionality and role of trust in online transactions. We outline a conceptual research model for the role of trust with regard to the consumers’ and suppliers’ intentions to engage in this economy. Our model differentiates between three substantial targets of trust, that is, trust towards peer, platform, and product (3P). We propose and evaluate a questionnaire, which addresses these targets in their dimensions ability, integrity, and benevolence.

Price Determinants on Airbnb: How Reputation Pays Off in the Sharing Economy

Trust is a crucial prerequisite for peer-to-peer rental and sharing. Therefore, platform operators such as Airbnb have implemented a plethora of trustbuilding mechanisms, user interface (UI) artefacts, and reputation systems. While the role of reputation systems for establishing trust is well-understood, little is known about how reputation actually translates into tangible economic value, either by attracting more demand or by enabling the enforcement of higher prices. In this paper, we consider the economic value of trust-building artefacts on Airbnb by quantifying price effects of common reputation features from a signaling theory perspective. Our analysis is based on hedonic price modeling and a large-scale dataset from 86 German cities that provides insights in the price effects of a diverse set of variables (average rating score, number of ratings, Superhost status, ID verification, photos, and duration of membership). Employing hedonic price regression modeling, we find that index signals such as the hosts’ rating scores and duration of membership are associated with economic value. Moreover, also conventional signals such as accommodation photographs consistently translate into price premiums. We discuss implications for platform operators, users, and the general design of Information Systems (IS) artefacts intended to facilitate peer-to-peer platform interactions.

The limits of trust-free systems : A literature review on blockchain technology and trust in the sharing economy

Abstract At the tip of the hype cycle, trust-free systems based on blockchain technology promise to revolutionize interactions between peers that require high degrees of trust, usually facilitated by third party providers. Peer-to-peer platforms for resource sharing represent a frequently discussed field of application for “trust-free” blockchain technology. However, trust between peers plays a crucial and complex role in virtually all sharing economy interactions. In this article, we hence shed light on how these conflicting notions may be resolved and explore the potential of blockchain technology for dissolving the issue of trust in the sharing economy. By means of a dual literature review we find that 1) the conceptualization of trust differs substantially between the contexts of blockchain and the sharing economy, 2) blockchain technology is to some degree suitable to replace trust in platform providers, and that 3) trust-free systems are hardly transferable to sharing economy interactions and will crucially depend on the development of trusted interfaces for blockchain-based sharing economy ecosystems.

Social Identity and Reciprocity in Online Gift Giving Networks

Compared to traditional channels, Internet transactions are intrinsically untrustworthy in nature. We investigate the impact of social identity and reciprocity on trusting and cooperative behavior in dynamic gift giving networks by means of an online laboratory experiment, with a main focus on value transfers among the users individually and directed towards the group. In this study, we display profile pictures and full names of the experiment participants in order to abrogate anonymity. Moreover, we provide the possibility for private peer-to-peer interaction, in contrast to mere contributions to the entire, undifferentiated group. We find indications for the efficacy of both dimensions as well as for an interaction effect. Our study has implications for the design of information systems where mutual trust between private users forms the basis for market interaction (e.g. ride-, car or apartment sharing platforms).

Colors and Trust: The Influence of User Interface Design on Trust and Reciprocity

Interpersonal trust and reciprocation are crucial factors in peer-to-peer online interactions. In order to shed more light on the association of user interface (UI) design and trusting as well as reciprocating behavior, we consider a computerized trust game with different interface background colors, red and blue, namely. We locate our work within recent NeuroIS theory, linking UI background color to user behavior via perceived warmth of UIs and color appeal. The results of a laboratory experiment indicate an enhancing effect of red interfaces on reciprocation behavior, fully mediated by perceived warmth. We suggest to further investigate this phenomenon by applying NeuroIS methodology.

A Hot Topic—Group Affect Live Biofeedback for Participation Platforms

Emotions are omnipresent in our lives. They influence our health, decision making, and social interactions—bilateral as well as multilateral. Hence also modern forms of opinion building and exchange, e.g., on e-participation platforms, should consider the effects of emotions on individual and group level. Previous research on group interactions demonstrated that providing the members with information about the affective state of the entire group, reciprocally influences the affective states of the individuals and can even increase group performance. Hence, in the current short paper we propose group affect live biofeedback (LBF) as a beneficial feature for e-participation platforms. We want to examine how group affect LBF based on the participant’s heart rate impacts participation behavior.

Foreign Live Biofeedback: Using Others’ Neurophysiological Data

Advances in sensor technology and real-time analysis of neurophysiological data have enabled the use of live biofeedback in information systems and the development of neuro-adaptive information systems. In this article, we transfer this notion to the use of foreign neurophysiological data. We sketch out an experimental approach and research model for investigating the impact of such foreign data in a trust scenario. We argue that foreign live biofeedback may be a powerful means to establish social presence and thus trust among the parties. Moreover, we discuss controversies such technology is likely to raise and sketch out potential strategies for IS service providers in this regard.