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The Sharing Economy: Its Pitfalls and Promises, EPUB eBook

The Sharing Economy: Its Pitfalls and Promises EPUB

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Description

Transactions have always taken place. For hundreds of years that 'place' was a market or, more recently, a shopping mall.

But in the past two decades these physical locations have increasingly been replaced by their virtual counterparts - online platforms.

Here, author Michael C. Munger demonstrates how these platforms act as matchmakers or middlemen, a role traders have adopted since the very first exchanges thousands of years ago.

The difference today is that the matchmakers often play no direct part in buying or selling anything - they just help buyers and sellers find each other.

Their major contribution has been to reduce the costs of organising and completing purchases, rentals or exchanges.

The Sharing Economy: Its Pitfalls and Promises contends that the key role of online platforms is to create reductions in transaction costs and it highlights the importance of three 'Ts' - triangulation, transfer and trust - in bringing down those costs.

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