Found 2 article(s) for author 'sharing economy'

Owning, Using and Renting: Some Simple Economics of the “Sharing Economy”

Owning, Using and Renting: Some Simple Economics of the “Sharing Economy”. Richard Zeckhauser, January 15, 2019, Paper, “New Internet-based “sharing economy” markets enable consumer-owners to rent out their durable goods to non-owners. We model such markets, and explore their equilibrium both in the short-run, before ownership decisions can be revised, and in the long-run, in which they can. We find that “sharing economy” markets always expand consumption and increase surplus, but may increase or decrease ownership. Our analysis also considers the costs of bringing unused capacity to the market. To complement our theoretical work, we conduct a survey of consumers, finding broad support for our modeling assumptions. For example, ownership is determined by individuals’ forward looking assessments of planned usage weighed off against the price of the good. The survey also allows us to offer a partial decomposition of the bring-to-market costs, based on attributes that make a good more or less amenable to being shared.Link

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Owning, Using and Renting: Some Simple Economics of the “Sharing Economy”

Owning, Using and Renting: Some Simple Economics of the “Sharing Economy”. Richard Zeckhauser, February 2016, Paper. “New Internet-based markets enable consumer/owners to rent out their durable goods when not using them. Such markets are modeled to determine ownership, rental rates, quantities, and surplus generated. Both the short run, before consumers can revise their ownership decisions, and the long run, in which they can, are examined to assess how these markets change ownership and consumption. The analysis examines bringing-to-market costs, such as labor costs and transaction costs, and considers the operating platform’s pricing problem. A survey of consumers broadly supports the modeling assumptions employed. For example, ownership is determined by individuals’ forward-looking assessments of planned usage.Link

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