Capturing Excess in the On-Demand Economy

42 Pages Posted: 22 Jul 2017 Last revised: 25 Jul 2017

See all articles by Erez Aloni

Erez Aloni

University of British Columbia (UBC), Faculty of Law

Date Written: July 13, 2017


Activities facilitated by on-demand platforms (such as Airbnb or Uber) produce varying levels of negative and positive externalities. In this Article I submit that the type and quantity of externalities produced are determined by the location of the activity along a spectrum of increased utilization. Transactions that make use of excess capacity produce the fewest negative externalities and produce more positive externalities. The more we move along the spectrum away from use of excess capacity and toward new capacity created for the platform use, the more negative externalities the activity produces. Thus, unique sets of rules should govern the categories that lie at each end of this spectrum: Excess capacity should be regulated differently than new capacity, with each set of regulations tailored to address the particular benefits and harms that stem from that kind of activity.

Keywords: Sharing Economy, Uber, Airbnb, Lyft, Gig Economy, Platform Economy, Local Regulation, Excess Capacity

Suggested Citation

Aloni, Erez, Capturing Excess in the On-Demand Economy (July 13, 2017). University of Hawaii Law Review, Vol. 39, No. 2, 2017. Available at SSRN:

Erez Aloni (Contact Author)

University of British Columbia (UBC), Faculty of Law ( email )

1822 East Mall
Vancouver, British Columbia V6T 1Z1

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