The Cost of Anonymity in the Sharing Economy: Consumers Distrust and Avoid Sellers Without Profile Photos.

Abstract

Sharing economy platforms, such as Airbnb, encourage sellers to display profile photos and other personal information to increase consumer trust and engagement. However, research has shown that consumers rely on this information to discriminate against sellers with certain characteristics (e.g., ethnic minorities). Some sharing economy sellers may therefore choose not to display a profile photo because they wish to conceal their appearance or social identity to prevent discrimination or other unfavorable treatment by consumers or because of general privacy concerns. In four preregistered studies with samples from the United States, United Kingdom, and the Netherlands, we examined the consequences of withholding profile profiles. We tested how the presence (vs. absence) of personal photos affects consumer trust and preferences for different sellers. Three experimental studies (total N = 380) suggest that consumers distrust and avoid hosts without a profile photo. In Study 4, we analyzed 461 ride-sharing listings and found that drivers with a profile photo charge higher prices for otherwise equivalent rides. In sum, our results suggest that sharing economy sellers face a tradeoff between anonymity and earning opportunities.