Economics: What is Sharing Economy?

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November 5, 2018
1 In its most basic definition, a sharing economy is a model that allows its members to have access to others resources, thereby reducing its price for access relative to other models. This is done by cutting through traditional lines of access and distribution and engaging in a Peer-to-Peer model.
2 The reason why Eckhard and Bardhi have suggested that a sharing economy is an access economy is that of the main purpose and principle that underlies within it. On the one hand, sharing economy is based on the social value of sharing, which is usually done reciprocally between people who know each other. Its central principle is sharing. On the other hand, an access economy is one that happens between different people, unbeknownst to one another, thereby needing a mediator to govern such transactions. This element of mistrust and doubt, as well as the emphasis on the utilitarian value of the exchange is the reason why a sharing economy is an access economy (Eckhardt & Bardhi, 2015).
3 Since the principle of sharing economy lies mainly in its utilitarian value rather than its social importance, marketing strategies...