Attention Economy


Sunday, July 26, 2015

Economics of the ‘Gig Economy’

An interesting piece from NYU professor Arun Sundararajan
Sundararajan observes:
“But these platforms [Uber, Airbnb, Etsy and TaskRabbit] are by no means merely the purveyors of Smith’s invisible hand. Rather, the hand they play in facilitating exchange is decidedly visible. Uber, not individual drivers, sets prices. Airbnb trains its hosts to be better providers of hospitality. Etsy facilitates seller community building. All of them provide user-generated feedback systems, creating a high-quality consumer experience. Much like an organisation building a brand might.
So it seems like we’ve invented a new institutional form – the peer-to-peer platform – a digitally powered hybrid between organising economic activity through the market and within the organisation. And because these platforms provide layers of trust, brand and expertise on demand, the need for specialising before you’re qualified to become a provider is reduced. Almost anyone with talent can become a part-time hotelier through Airbnb or an artisan retailer on the side through Etsy. Any reasonably competent driver can morph into a provider of commercial transportation by plugging into Uber or BlaBlaCar.”


Related:
http://vivekjayakumar.blogspot.com/2015/06/the-sharing-economy.html