Addressing Particular Regulatory Considerations Part Ii The Cambridge Handbook Of The Legislation Of The Sharing Economy

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10.6 these concepts may apply to many extra real-world settings. Finally, we explore the influence of enabling communication among brokers in a market with non-identical brokers. 9.6, we set up that pre-play communication helps agents sustain the revenue maximizing one among the many a number of equilibria arising due to providing operational efficiency.

Overall this research supplies empirical evidence for increased demand and the worth unlocked by using group shopping for events within the channel, and testifies for the effectiveness of this innovative sharing financial system enterprise mannequin. We confirmed that consumers always benefit from collaborative consumption, with individuals who, in the absence of collaborative consumption, are indifferent between owning and never proudly owning benefitting probably the most. We additionally confirmed that the platform’s profit isn’t monotonic in the cost of possession , implying that a platform is least profitable when the price of ownership is both very excessive or very low . In addition, we noticed that, when the value of ownership is low, platform profit may be rising within the further wear and tear value, suggesting that a for-profit platform might not always have an incentive to remove this cost.

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The intuition also lies within the tradeoff between the cannibalization effect and the value-enhancement effect of the sharing market. This result is consistent with the result that in a channel with endogenous capacity, sharing among shoppers tends to increase the downstream retailer’s share of the entire gross margin within the channel. In such a distribution channel, the retailer is more anush beeram accident prone to have an incentive to promote or facilitate consumer-to-consumer sharing, especially when capability is costly to construct. Term sharing financial system has been used to discuss with businesses that enable the foregoing of ownership in favor of “on-demand” entry.