Ch 10: The Sharing Economy, Collaborative Consumption, and Efficient Markets through Tech

some firms offer service providers additional coverage and protection guarantees, but the.....

environment is still fluid

Highly fragmented markets are...

especially ripe for rollup in electronic marketplaces. Lots of suppliers in a traditional market means customer search costs are high . But ratings in marketplaces help you quickly size up quality providers and make a lower risk choice

Word of mouth sharing and the virality offered by social media accelerate .....

the growth of sharing economy marketplaces

Instilling trust does not mean that firms are without safety issues

and participants in the sharing economy are continuing to evolve their policies as a result

Programs where customers receive discounts for sharing the company...

attracts new customers and builds trust in the company for the new customer

Crowdsourced ratings

can also reflect the crowd's bias and reinforce discrimination allegations in an Uber driver forum suggest college students rate older drivers lower lyft doesn't track race or gender

Sharing the economy (collaborative consumption)

can involve the recirculation of goods, increased utilization of durable assets, exchange of services, or the sharing of productive assets

These efforts are enabling a generation of .....

citizens suppliers, to go into business for themselves

social technologies help allay fears of these people offering services by...

collecting ratings and sharing ratings, ensuring payment, and offering increased scheduling convenience

Technology has enabled staggeringly diverse groups of product and service providers to....

connect with consumers, offering far greater reach and efficiency than traditional markets

Many sharing economy firms were born during a prolonged, worldwide ___________, where _______ had boosted consumer interest in low-cost alternatives to ______________. This encouraged a whole new class of __________ to try their hand at offering services for hire.

economic recession , stagnant wages, conventional products and services, lay-people

These firms fuel more....

efficient matching of supply and demand, lower costs, enable more efficient resource use, and provide a level of reach and services heretofore unavailable

In highly fragmented market, marketplaces oftentimes....

extend the value chain by getting between suppliers and costumers that would otherwise connect directly if the network offers value through search and discovery, scheduling, payment, reputation management and more, then a longer value chain can be a more efficient one

participating in the sharing economy raises questions for....

insurers

Firms that can turn customers into brand ambassadors can see...

lower advertising and customer acquisition costs

Most of the internet enabled market makers can trace their roots back to...

once pioneering, now massively influential firms like ebay and craigslist, which empowered all sorts of individual sellers and service providers

Opposition threatened by sharing economy firms is.....

strong taxi and hotel owners represent powerful lobbies and they would love to see competition from the sharing economy go away.

Many local firms also benefit from taxes and regulatory fees from industries threatened by the sharing economy, and groups opposed to, new rival efforts can represent

very powerful lobbies