Peer-to-Peer Product Sharing: Implications for Ownership, Usage, and Social Welfare in the Sharing Economy
By S. Benjaafar, Guangwen Kong, Xiang Li, Costas Courcoubetis. Management Sciences, 2019
396 citations recorded by the source corpus.
We describe an equilibrium model of peer-to-peer product sharing, or collaborative consumption, where individuals with varying usage levels make decisions about whether or not to own a homogeneous product. Owners are able to generate income from renting their products to nonowners while nonowners are able to access these products through renting on an as-needed basis. We characterize equilibrium outcomes, including ownership and usage levels, consumer surplus, and social welfare. We compare each outcome in systems with and without collaborative consumption and examine the impact of various problem parameters. Our findings indicate that collaborative consumption can result in either lower or higher ownership and usage levels, with higher ownership and usage levels more likely when the cost of ownership is high. Our findings also indicate that consumers always benefit from collaborative consumption, with individuals who, in the absence of collaborative consumption, are indifferent between owning and not own...
Subfields: Automotive Engineering, Marketing, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/309484479e1e1ec3c80b5aae2b4a914b2e720caa
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Citations in the corpus
- Pay-per-use business models as a driver for sustainable consumption: Evidence from the case of HOMIE (2018, background): “Moreover, literature suggests that user behaviour can even become less responsible when a product is not owned, leading to reduced efficiencies and increased wear of the product (see e.g. Cohen and Kietzman, 2014; Benjaafar et al., 2015).”
- A novel decentralized platform for peer-to-peer energy trading market with blockchain technology (2021, background): “Also, the concept of P2P trading, which is a form of shared economy [46,47], cultivates trust and collaboration as resources are shared within the community.”