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conference paper

The Question of Ownership in a Sharing Economy

Weber, Thomas A.  
March 30, 2015
2015 48th Hawaii International Conference on System Sciences
48th Hawaii International Conference on System Sciences

The sharing of durable goods in a dynamic ownership economy is attractive, since it has the potential to realize gains from trade via short-term transfers of usage rights. We develop a model in which a set of agents, who are heterogeneous in their likely need of a durable good, make purchase decisions and then have the option to participate in a sharing market contingent on a realized need. The agents' purchase decisions are compared to a situation where ex-post sharing is impossible. The impact of sharing on product sales is ambiguous: for low-price products sales may drop, while for high-price products the number of consumers who decide to become owners may actually increase. Our analysis extends to a sharing market in which prices are negotiated bilaterally in a Nash-bargaining framework. The resulting negotiated-sharing equilibrium allows for a realistic supply-demand imbalance in the sharing market.

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The_Question_of_Ownership_in_a_Sharing_Economy.pdf

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openaccess

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CC BY

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