The Sharing Economy - A Hybrid Market Model Of A Peer-to-peer Exchange - 550 Words

The Sharing Economy - A Hybrid Market Model Of A Peer-to-peer Exchange (Essay Sample) Content: Student’s Name Professor’s Name Course Title Date of Submission The Sharing Economy The sharing economy involves the distribution of goods and services, directly from an individual or organization for a fee or for free. The sharing economy has provided digital marketplaces that create more value to consumers and suppliers by reducing the cost of sharing goods or services. Cutting off go-betweens and facilitating direct exchange has enabled businesses to exploit economies of scale by harnessing the opportunities created through peer-to-peer economic activities. The sharing economy has a pivotal role in building global markets in the rapidly growing capacity of sharing activity. In the sharing economy companies such as Airbnb and Khan Academy are echoing the innovative changes fuelled by digital technology building a social movement in economies across the globe. Since its inception, the sharing economy has exponentially grown valued at over $14 billion in 2014. E-commerce sites are projected to increase to $335 billion by the year 2025 (Belk 1598). Amidst of the great success of the sharing economy, there has been a significant concern that it will cause more harm than good in the future like opening up of unregulated peer-to-peer marketplaces which will have severe social implications (Interian 129). The sharing economy consists of two types of participants, namely those in it for profit purposes (Capitalists) and those purely for helping others get access to various goods and services (gift organizations). An excellent example of profit platforms is Airbnb, which allows owners of apartments, rooms, and hotels to market their services to potential customers. The primary drive for capitalists who sell their goods and services is to amass wealth. From studies done, it is clear that the central incentive is the financial aspect (Interain 129). The capitalist economy has a wide range of benefits to the business owners, but employees are dealt the shorter hand since employee welfare does not have importance resulting in the erosion of workers protection and bargaining power (Sundararajan 75). Gift organization like the Khan Academy use electronic devices to create platforms of providing learning material at a cheaper cost or no expense. Gift economies involve exchanges that based on memory, trust, and reputation. Learning Institutions and teachers should embrace online courses such what Khan Academy has undertaken. Teaching material can be made accessible to every person in society, cheaper, and exciting since there is a bounty of educative information available. Gift organizations have a vital role in building the nation, but capitalist groups have a more significant potential to grow as the standard platform because of the immense revenue streams it invites (Rapson and Pasquale 233). Different factors catalyze the growth of capitalist economies. One key motivation is the flexibility online marketplaces offer to vendors. Through the use of information technology, self-employed individuals, small and large businesses can operate from any corner of the globe. Also, reduced trade barriers have had a positive effect on increased access to large...