2. Governments could limit competition through exclusive medallions, administer licensing exams for drivers, and set insurance requirements and other standards; fleet operators could ensure vehicles were safe and could identify and discipline dangerous drivers. Highlighting the consumptive, coordinated market character of the practice, the sharing economy has also been closely identified with ‘collaborative consumption’ (Belk, 2014) or ‘access economy’ (Eckhardt & Bardhi, 2015). Economic ‘gains from sharing’ are realised as previously underutilised private goods are made available to more consumers (Fremstad, 2016). B., Walker, E. T., Lee, C. W., Parigi, P., & Cook, K. (2015). Importantly, how are the costs and benefits of mutuality shared between members and platform operators? The Article then turns to review existing regulatory responses to the sharing economy. Readers learn the scientific challenging issues associated with the realization of a sharing economy. 2016. The authors suggest that an understanding of sharing economy markets as fields can not only capture the highly organized nature of the sharing economy, but also serve to untangle the contestations and power dynamics unfolding among various actors engaged in different regulatory issues associated with the sharing economy. The ontological status of goods transacted in the sharing economy has implications for how they should be regulated. In many cases, sharing economy platforms have the right incentives, an incredible amount of information, and are best able to control those consuming and providing services through their platforms. These traditional regulations often protect weaker consumers against large, professional, business savvy service providers. The right to decide what is being shared and amongst whom varies culturally, and reflects the norms and hegemonies within a given society (Belk, 2009; Tomasello et al., 2005, pp. Newsnight (2016). In the US, multiple cities including Miami, Houston, Portland, Austin, and New Orleans have outright banned services like Uber. Northwestern Journal of International Law and Business, 34(1), 1-52. But as the sharing economy has disrupted traditional self-regulatory models, it has created opportunities for new self-regulatory approaches that rely on new technology and new platforms. The practice of sharing in our proposed definition is not dependent on shared ownership or access to products or services, since sharing economy goods may be excluded from those who do not pay. Sharing. In many respects, the approach that policymakers take with respect to the sharing economy is tied to their approach to supporting technology and innovation more broadly. 5. Benkler Y (2006). In Jakarta, Indonesia, which has one of lowest rates of taxis per person in Asia, the sharing economy enables a company like Ojek Syari to connect female drivers with Muslim women who are uncomfortable with male drivers. Our goal is to investigate the role of “ethics”, conducted by the “B Corp” Standard Certification System, on sharing platforms. Requirements for criminal records checks and other status checks vary between countries and companies. What are the personal motivations, group dynamics, and social norms that govern membership and breathe life into these markets? Whereas scholars and policymakers generally agree that the implications of this shift will be profound and far reaching, there is more disagreement as to whether these changes will be good for society. This misalignment has often provoked the taxicab industry to push for stricter regulation of ride-sharing. One of the dangers posed by the sharing economy is that regulators and citizens confuse sharing economy goods with public or semi-public goods. BBC2. New Haven and London: Yale University Press. Regulating the sharing economy The sharing economy has transformed economic transactions, created new organizational forms, and contributed to changes in consumer culture. Shared, Collaborative and On Demand: The New Digital Economy. This Article posits ten first principles on which a regulatory response to the sharing economy must rest. The authors report on results of a new survey conducted with crowdworkers on the international platform jovoto, measuring workers’ motivations and concerns. Moreover, as more people all over the world increasingly become comfortable arranging and paying for services online, it has made it feasible to offer highly specialised, niche services that might not scale in traditional markets. Discussion around the policy implications, requirements and needs in relation to the sharing economy have just begun. Cheng, D. (2014). Pew Research Centre (2016). Theorizing the Sharing Economy: Variety and Trajectories of New Forms of Organizing (Research in the Sociology of Organizations, Vol. These forms of regulation demonstrate an approach that is more nuanced than simply leaving the sharing economy unregulated, regulating the sharing economy under existing regulations, or banning it outright. Cookie Settings. (click to show list of locations and regional sites), Read More about: L&H Executive Dialogue for MEA 2023, Read More about: US economic outlook: a cold spell awaits an overheated economy in the New Year, Read More about: Latin America market report 2022: moderating growth amid rising headwinds, Read More about: Not much for central bankers to be thankful for. 2. Suggested Citation, 514 W. Jefferson StBoise, ID 83702United States208-364-4559 (Phone)208-344-2176 (Fax), Political Economy: National, State & Local Government; Intergovernmental Relations eJournal, Subscribe to this fee journal for more curated articles on this topic, IO: Regulation, Antitrust & Privatization eJournal, Property, Citizenship, & Social Entrepreneurism eJournal, Subscribe to this free journal for more curated articles on this topic, Property, Land Use & Real Estate Law eJournal, Law & Society: Private Law - Property eJournal, Urban Economics & Regional Studies eJournal, Comparative Political Economy: Regulation eJournal, We use cookies to help provide and enhance our service and tailor content. Behavioral and Brain Sciences 28(5), 675–735. The platforms can also offer economies of scale and centralisation that can help their non-professional consumers and producers who might otherwise struggle to understand when to collect taxes or how to get commercial insurance. For Airbnb, home insurance needs to be provided by individual participants. The Journal of Economic Perspectives, 7(4), 93-112. Roberto Tietzmann, Pontificia Universidade Católica do Rio Grande do Sul (PUCRS), Brazil It becomes the prerogative of individual service provider whether to provide adequate wheelchair access to Airbnb rooms, or for ride-sharing drivers to cover rural areas or cater for children, as described in Leiren and Aarhaug’s article (2016, this issue). Even assuming that user rating systems can be well-defended from malicious attack and do not mask systemic biases introduced by commercial interests, the removal of traditional commercial parties from exchanges means that those responsibilities must be displaced elsewhere. 1. Abstract. With the presence of network effects and in the absence of competition (or portability) between services, participants may find themselves locked into a single platform and subject to unfavourable conditions. Our applied research covers emerging risks, industry trends and topical deep dives. Kristofer Erickson, University of Glasgow, United Kingdom Botsman, R. (2013). First, the incentives to self regulate do not fall equally across all stakeholders. Given these competing tensions, where do policymakers begin in realigning outdated regulatory systems? However, unlike gift economies where reciprocity aids in strengthening group ties, or commons-based peer production where ownership of collaboration is shared, commercial sharing economy platforms are not held together by reciprocity or shared ownership of goods. The sharing economy represents a profound change in the way goods and services are exchanged. Smarter regulation for the sharing economy. Technology-based sharing platforms are touching more and more people’s lives, but policy and regulation can struggle to cope with new technologies. We need to rethink our notion of the sharing economy in order to make better regulation. Consequently regulation may be desirable to protect workers rights and well-being (De Stefano, 2016). Beyond Misclassification: The Digital Transformation of Work. For that reason, new technological and reputation-based mechanisms of self regulation can be a key tool for regulating the sharing economy. To what extent can Uber’s service be compared to the licensed taxi driving profession? One of the most powerful elements of the sharing economy is how it has enabled innovative services that simply would not have been possible without the emergence of new platforms connecting potential consumers with under-utilised property or skills. Available at: http://scholarship.claremont.edu/pitzer_theses/61 (Accessed on 10/06/2016). The Swiss are more doubtful about the need for further regulation than respondents in the USA, where 25% were in favour and 28% against. The issues of concern covered by the contributions in this issue are the ontological status of shared goods, the conditions of crowdworking, regulation of trust between strangers, definition of relevant markets for competition regulation and European media policy concerns. First monday, 3(12). The most widespread business model deployed by sharing economy companies features an online market place through which … Here again, the Article focuses on regulations related to the short-term rental market with a particular emphasis on the two strictest existing local government regulatory structures, which are those of San Francisco and Portland. PLURALIZING THE “SHARING” ECONOMY . Contexts, 14(1), 12-19. 53 Harvard Journal on Legislation 147 (2016), Available at SSRN: If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Remix: Making art and commerce thrive in the hybrid economy. Sticky Norms, Endogenous Preferences, and Shareable Goods. It considers the factors contributing to its formation and growth. In this chapter, the authors argue that regulatory solutions for the sharing economy hinge on the understanding of the ways in which the sharing economy is organized. For example, non-discrimination and common carrier regulations for hotels are designed to protect travelers or others whose need for accommodations and lack of negotiation leverage makes them particularly vulnerable to predatory practices. Dr. Gasser has published extensively on law and policy issues in the digital age, including “Born Digital: Understanding the First Generation of Digital Natives” (Basic Books, revised 2016) and “Interop: The Promise and Perils of Highly Interconnected Systems” (Basic Books, 2012, with John Palfrey). The sudden rise of the sharing economy has sparked an intense public debate about its definition, its effects and its future regulation. of San Diego, Legal Studies Research Paper Series, Mar. For example, 2014 regulations in Amsterdam require short-term rental platforms to work with hosts to prominently display relevant laws and regulations around the rental property. Throughout the contributions to this special issue there is an implicit - and sometimes explicit - movement towards self-organisation, regulation and legislation. However, as the sharing economy grows, regulators that can move beyond command and control regulatory systems and can orchestrate the wide range of regulatory tools available will be best able to deliver on the benefits of the sharing economy while avoiding its pitfalls. 683-4). But these approaches can be overly restrictive, creating a misalignment. You may be able to access teaching notes by logging in via your Emerald profile. The History of the Web. He serves on the board of the NEXA Center for Internet & Society at the University of Torino, the Research Center for Information Law at the University of St. Gallen as well as the Digital Asia Hub in Hong Kong, among others.
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