ACCT 210 Lecture Notes - Lecture 57: Sharing Economy, Competitive Advantage, Ebay

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 210
• Professor: mohamed

Document Summary

Model can help other businesses to understand se characteristics & respond strategically. Multi-sided platforms (msps): centred on facilitating interactions between two or more parties, e. g. ebay. Sharing economy platforms are a form of msps, but facilitate rental & sharing instead of buying. Enabled by diffusion of digital technologies; intermediaries mitigate risks, build trust & lower transaction costs. Sharing economy platforms don"t need traditional industry dynamics network effects are at the core of sharing economy business models and value propositions. Sharing economy platforms compete by exploiting boundary fluidity. Involves different pricing schemes that incentivize sharing or renting. Price system: either based on supply & demand, cost of service provision or as compensation to the service provider. Four sharing economy models: horizontal axis: organisational coordination mechanisms determine the level of control exerted by platform owners over platform participants, vertical axis: market coordination mechanisms determine the intensity of rivalry among supply-side platform participants.