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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.

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Aug 10th, 12:00 AM

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.