Page 36 - Trust in ICT 2017

1 Trust in ICT

Figure 7 – A path selection scenario in multi-hop D2D environment

5.2.8 Trust provisioning of used car transaction service
5.2.8.1 Description

While the used car market has been growing consistently in worldwide, there exists inevitable distrust in
used car transactions. Comparing to purchasing a new car, buying a used car involves high level of uncertainty
and risk. The market for used car is called as “the market for the lemons”, which is produced by asymmetric
information, in which buyers can not accurately assess the exact condition of a car through examination
before sale is made while sellers can more accurately assess the condition of a car prior to sale. Specifically,
owners of good cars will not sell their cars while only owners of defective cars will sell their cars. When sellers
are going to sell their used vehicle, they have a weak motivation of disclosing the problems of their cars. As
a result, consumers are hardly satisfied with the used cars because of unexpected car trouble. General
transaction model and each entity’s information level of a used car are depicted in Figure 8.
Basically current used car transaction involves following inevitable problems; (1) asymmetric information, (2)
conflicting motivation of disclosing the condition of used car due to (1), and (3) distrust among entities due
to (2). Thus, an appropriate intervention is needed for avoiding dispute among entities and activating the
used car market as illustrated in Figure 9.
In order to overcome sequential problems discussed, it is direct remedy to make participants share
information. Trust management platform can play an important role in mediating entities who participate in
used vehicle market and sharing trustful data and information.

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