Sharing on platforms: Reducing perceived risk for peer‐to‐peer platform consumers through trust‐building and regulation

Sharing a flat with strangers is no longer hypothetical but well accepted by many consumers who participate in peer‐to‐peer (P2P) services. Online P2P sharing platforms act as intermediaries between providers and consumers who do not know each other personally. Sharing via platforms entails a certain amount of risk for consumers. Thus, in order to attract consumers, platforms need to apply mechanisms to reduce the perceived risk of potential consumers. In a prestudy and two experimental online surveys, the current research investigates whether trust‐building measures and regulation mechanisms presented on a website can reduce the potential consumers' level of perceived risk and increase their willingness to participate in a platform's sharing offer. First, an analysis of existing P2P accommodation platforms showed a lack of regulation mechanisms. Second, the manipulation of information on P2P accommodation platforms' websites in two online experiments revealed that regulation mechanisms led to lower perceived risk and a higher intention to engage in sharing. However, commonly used trust‐building measures on P2P accommodation platforms show no significant effect on risk perception and the intention to engage in sharing in the present study. We point out relevant managerial possibilities to minimise the perceived risk of potential consumers of P2P platforms.