Chapter 12: Sharing Economy and Collaborative Consumption

Sharing Economy

Market model based on peer-to-peer exchange of goods/services.

Collaborative Consumption

Technology-fueled sharing or renting among individuals.

Two-sided Network Effect

Value rising as more buyers and suppliers join a platform.

Peer-to-peer

Direct interaction between individual users, not firms.

Platform

Technology system bringing together marketplaces of buyers/suppliers.

Circular Economy

Design and use model maximizing reuse/recycling.

Asset Utilization

Using products or resources to their fullest potential.

Virality

Growth driven by user referrals and word of mouth.

Review System

Consumer ratings building trust and accountability.

Liquidity

Ease of finding and completing desired transactions.

Regulatory Environment

Laws shaping how businesses operate in this sector.

Reputation Management

Building and maintaining trust and positive perception.

Payment Security

Safe methods to transfer money online.

Disintermediation

Removing traditional intermediaries in transactions.

Fragmentation

Many small firms in a market, ripe for consolidation.

Ownership Model

Whether the platform owns, rents, or partners for inventory.

Social Proof

Trust built through user ratings and testimonials.

Gig Economy

Labor market of flexible, temporary jobs through online platforms.

On-demand Service

Fulfillment of needs as soon as they're expressed.

Micro-entrepreneur

Individuals earning income by sharing/renting assets or skills.

Trust Signals

Mechanisms ensuring safe and honest platform transactions.

Risk Management

Strategies to limit financial and personal risk online.

Network Effects

More users make a service more valuable for everyone.

Insurance Redlining

Withholding insurance based on asset commercial use.

Crowdfunding

Raising small amounts of capital from many people online.

Ride-sharing

Coordinated car rides through apps like Uber or Lyft.

Home-sharing

Renting living spaces (e.g., Airbnb).

Inventory Roll-up

Aggregation of small players to reach critical mass.

Bias in Rating Systems

Risk of discrimination in crowdsourced reviews.

Marketplace Liquidity

Having enough demand and supply for fast matches.

Social Technologies

Tools enabling rapid and trusted connections.

Secure Payments

Platforms protecting purchases and sales.

Service Scheduling

Automated calendar and logistics coordination.

Brand Ambassadorship

Satisfied customers referring others.

Environmental Impact

Reduced waste through sharing or reuse.

Fraud Prevention

Mechanisms limiting scam risks.

Worker Classification

Legal status of gig workers (employee vs. contractor).

Market Saturation

Overcrowding leading to diminishing returns.

Investment Return

Measuring value of resources pooled or shared.

API Integration

Connecting services for increased value and flexibility.

Roll-up Strategy

Merging market niches to gain efficiency or scale.

Crowdsourcing

Gathering input, labor, or funding from large groups.

Trust and Safety

Cultures and systems protecting users.

Inventory Utilization

Maximizing the use rate of goods or assets.