Exam 10: The Sharing Economy, Collaborative Consumption, and Creating More Efficient Markets Through Technology

While some fear Airbnb is taking jobs away from hotel chains, the firm is also creating jobs and driving demand for a whole array of platform-enhancing services, including photographers, key-exchange coordinators, in-home chefs, house cleaners, and ride-sharing services.

Uber's CEO views itself as software platform for shipping and logistics.

If eBay and Craigslist are included, some 40 percent of the US and Canadian population have participated in the sharing economy.

Rent the Runway and Chegg have chosen to purchase their own inventory for rental to customers, rather than relying on inventory provided by participating citizens suppliers. This incurs an additional cost on these firms. Why would they opt to use this model if startup costs are going to be more expensive?

Why are sharing economy marketplaces so attractive to consumers?

Describe Uber's API and how network effects play a role in its attractiveness to partners.

What are some concerns regulators have over the sharing economy using independent contractors and not full time employees?

___________ refers to the technology used to integrate Uber with other services, including OpenTable, GoogleMaps, and Spotify.

How does Uber ensure high driver quality?

Why were fashion firms initially threatened by Rent the Runway and why has their position evolved over time?

Surge pricing allows Uber to increase the supply of drivers when demand is high.

Payment continues to represent a barrier to widespread adoption of the sharing economy, since many consumers feel uncomfortable exchanging cash or financial information with strangers.

Given examples of firms in the sharing economy that focus on the following categories: goods, transportation, and capital provision. List markets challenged in each of these areas.

Social media profiles can also be used to fight online fraud.

Entrepreneurs are scrappy in their quest to gather market intelligence and understand how customers respond to their offerings. How did Airbnb's CEO gather additional intelligence on how the firm was being used?

Highly _______ markets are especially ripe for rollup in electronic marketplaces

Which of the following is *not* an example of larger, conventional firms working with sharing economy startups?

Crowdsourcing has a number of benefits, but problems include the potential for bias and discrimination. How can crowdsourced ratings also reflect the crowd's bias and reinforce discrimination.

Prof. Juliet Schor says that businesses considered to be part of the _________________ can involve the recirculation of goods, increased utilization of durable assets, exchange of services, or the sharing of productive assets

What is the difference between collaborative consumption firms Zilok and Chegg.