\
 

Start Date

16-8-2018 12:00 AM

Description

The rapid growth of the sharing economy in multiple industries suggests that the peer-to-peer participants are claiming an increasing share of the market, and having a real impact on traditional firms. Assessing the magnitude of this impact is critical for both sets of providers. Economic conditions play a critical role in determining the overall demand for services and the extent to which different providers can capture that demand. This paper uses a system dynamics approach to evaluate market share and revenue under a variety of economic conditions when traditional and peer-to-peer providers compete. The paper focuses on the travel and hospitality industry and examines the role of apartments for rent in contrast to traditional hotel rooms. Results suggest that unless the sharing economy is subjected to strict regulation, it will perform favorably under a variety of economic conditions.

Share

COinS
 
Aug 16th, 12:00 AM

Modeling the Impact of the Sharing Economy on Traditional Firms

The rapid growth of the sharing economy in multiple industries suggests that the peer-to-peer participants are claiming an increasing share of the market, and having a real impact on traditional firms. Assessing the magnitude of this impact is critical for both sets of providers. Economic conditions play a critical role in determining the overall demand for services and the extent to which different providers can capture that demand. This paper uses a system dynamics approach to evaluate market share and revenue under a variety of economic conditions when traditional and peer-to-peer providers compete. The paper focuses on the travel and hospitality industry and examines the role of apartments for rent in contrast to traditional hotel rooms. Results suggest that unless the sharing economy is subjected to strict regulation, it will perform favorably under a variety of economic conditions.