Controlling and Pricing Shareability

Proceedings of the 50th Annual Hawaii International Conference on System Sciences (HICSS), January 2017, pp. 5572--5581.

10 Pages Posted: 18 Jun 2016 Last revised: 26 Jan 2017

See all articles by Thomas A. Weber

Thomas A. Weber

Ecole Polytechnique Federale de Lausanne - MTEI

Date Written: June 15, 2016

Abstract

In the presence of a peer-to-peer economy, the option of sharing an item is valuable for consumers. By retaining control over the shareability of its products a monopolist can set a sharing tariff in conjunction with the purchase price of the product, in order to extract state-contingent surplus from consumers: the shareability rent. Using an overlapping-generations model with heterogeneous consumers, we determine the jointly optimal retail price and sharing tariff for durable products, and quantify the value for the control of shareability, thus defining the firm's financial boundary conditions for an investment in sharing-control technologies.

Keywords: aftermarket control, collaborative consumption, market equilibrium, monopoly pricing, overlapping generations, sharing economy

JEL Classification: C72, D11, D23, D61

Suggested Citation

Weber, Thomas A., Controlling and Pricing Shareability (June 15, 2016). Proceedings of the 50th Annual Hawaii International Conference on System Sciences (HICSS), January 2017, pp. 5572--5581., Available at SSRN: https://ssrn.com/abstract=2797172

Thomas A. Weber (Contact Author)

Ecole Polytechnique Federale de Lausanne - MTEI ( email )

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