Guido Smorto

The case for regulating the sharing economy

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Abstract

Despite the great deal of attention and fierce regulatory battles worldwide, the sharing economy is still an overlooked topic in legal studies. This paper aims first at defining «sharing economy» and providing an economic explanation of the wide variety of economic activities mediated by digital platforms that enable «peers» to share private underused assets and to provide services. Further, it investigates the impact of sharing economy on consumer protection, competition, market failures and innovation. Indeed, the disruptive potential of sharing activities goes well beyond ongoing struggles between incumbents and sharing firms, challenging existing laws and regulations in many ways. To conclude, it examines how these practices fit existing legal rules and analyze potential regulatory responses.

Keywords

  • Sharing Economy
  • Two-sided Market
  • Market Failure
  • Innovation
  • Regulation

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