The cost of privacy in the sharing economy: Consumers distrust and avoid sellers without profile photos

Sharing economy platforms, such as Airbnb, encourage sellers to display profile photos and other personal information to increase consumer trust and engagement. Some sellers, however, may withhold photos because of privacy concerns, especially given that studies show that consumers rely on photos to discriminate against certain sellers. In four preregistered studies with samples from the United States, United Kingdom, and the Netherlands, we examined how the presence (vs. absence) of personal photos affects consumer preferences. 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 privacy and earning opportunities. While withholding profile photos may alleviate privacy concerns, it can also lower expected earnings.