Competitive Risks in the Sharing Economy and the European Union Market Regulation

17 Pages Posted: 2 Nov 2016

See all articles by Andrés Boix-Palop

Andrés Boix-Palop

University of Valencia - Universitat de València Estudi General

Date Written: October 15, 2016

Abstract

The massive reduction of costs due to efficient platform brokerage has allowed the “collaborative commons” to expand and evolve, and also to create new and very efficient markets: the so-called “sharing economy”. However, bigger and more efficient sharing platforms also have some drawbacks, such as the concern that these powerful digital brokers could harm fair competition. Nevertheless, economic models seem to support the idea that digital platforms have rarely inhibited the emergence of competitors, nor do they seem to be extracting predatory benefits by abusing their position to the detriment of consumers. This relative lack of risk has pushed competition authorities across Europe to promote the new collaborative business models, regardless of other potential risks: not only the competitive risks, but also the social ones. Both deserve greater and more careful analysis. In order to produce such an analysis, it would be necessary for the competition authorities to be institutionally reshaped and reinforced with different types of staff. Also, a more ambitious vision of the competitive issues, which combines both economic and social issues, would be required.

Keywords: sharing economy, legal change, competition, two-sided markets, digital brokerage

JEL Classification: K20, K21

Suggested Citation

Boix-Palop, Andrés, Competitive Risks in the Sharing Economy and the European Union Market Regulation (October 15, 2016). Available at SSRN: https://ssrn.com/abstract=2863032 or http://dx.doi.org/10.2139/ssrn.2863032

Andrés Boix-Palop (Contact Author)

University of Valencia - Universitat de València Estudi General ( email )

Avda. de los Naranjos s/n
Valencia, Valencia E-46022
Spain
963828598 (Phone)
963828104 (Fax)

HOME PAGE: http://www.uv.es/aboixp

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