Peers or Professionals?

Abstract

For almost a decade, digital peer-to-peer initiatives (eg, Uber, Airbnb) have been disrupting the traditional economy by offering informal, diverse, convenient and affordable services to consumers. However, more recently, the peer-to-peer economy has become increasingly professionalised. Service providers in the ride and home-sharing sectors feel significant pressure to offer services similar to those of professionals, practise the low or high prices suggested by algorithmic pricing tools, and show at all times professionalism. This shift towards professionalisation has been accompanied by regular information exchanges between service providers and platforms as well as by the growing use of algorithmic pricing. This article analyses first the evolution of the sharing economy from a peer-to-peer system that benefited from initial regulatory leniency due to its sustainable and informal goals, to a quasiprofessional economy where users are driven by profit making and the need to receive excellent rating and reviews. Second, it provides a preliminary analysis of the potential competition concerns that might arise as information exchanges and pricing tools become more common in the platform economy. This article contributes to the existing literature by discussing the challenges of enforcing existing competition law tools in an algorithmic context.

Micro Entry Theory: Understanding the Drivers and Effects of the Entry of Micro Players in the Context of Digital Platforms

“…Of course, micro players have not been the sole beneficiaries of digital platforms. Recent research shows that platforms also facilitate the entry of small and medium businesses that offer specialized products and services on a permanent basis (Chen et al, 2023;Ranchordás, 2017;Xie et al, 2021). [3] For instance, onAirbnb individuals who rent their properties part-timecoexist with full-time professional operators (O'Neil and Ouyang, 2016;Xie et al, 2021).…”