Description
This study examines what types of perceived risks influence consumers’ and non-consumers’ willingness to pay for ride-sharing services as a representative of the sharing economy. Choice experiment models are constructed to capture consumers’ and non-consumers’ perceptions of the relative importance of each service attribute reducing perceived risk. Results show individuals’ utility significantly increases when the service does not require private information from consumers, provides a driver-tracking system, requires a commercial driver’s license from drivers, offers a driver-review system, comprehensively compensates for negative incidents, and guarantees a minimum wage and benefit plan for drivers. This research contributes to a deeper understanding of the role of perceived risk in the sharing economy, and suggests theoretical and practical implications that can assist companies and policy makers.
Recommended Citation
Hong, Soo Jeong, "Assessing Economic Value of Reducing Perceived Risk in the Sharing Economy: The Case of Ride-sharing Services" (2017). AMCIS 2017 Proceedings. 34.
https://aisel.aisnet.org/amcis2017/eBusiness/Presentations/34
Assessing Economic Value of Reducing Perceived Risk in the Sharing Economy: The Case of Ride-sharing Services
This study examines what types of perceived risks influence consumers’ and non-consumers’ willingness to pay for ride-sharing services as a representative of the sharing economy. Choice experiment models are constructed to capture consumers’ and non-consumers’ perceptions of the relative importance of each service attribute reducing perceived risk. Results show individuals’ utility significantly increases when the service does not require private information from consumers, provides a driver-tracking system, requires a commercial driver’s license from drivers, offers a driver-review system, comprehensively compensates for negative incidents, and guarantees a minimum wage and benefit plan for drivers. This research contributes to a deeper understanding of the role of perceived risk in the sharing economy, and suggests theoretical and practical implications that can assist companies and policy makers.