Service Refusal in the Sharing Economy: Evidence of the New-User Bias

48 Pages Posted: 15 Apr 2020

See all articles by Miaomiao Liu

Miaomiao Liu

Fudan University - School of Management

Cheng Zhang

Fudan University, School of Management

Zhijie Lin

Tsinghua University - School of Economics and Management

Yong Tan

University of Washington - Michael G. Foster School of Business

Date Written: March 21, 2020

Abstract

Service refusal (i.e., providers refuse to provide service to users), which has become an increasingly serious problem in the sharing economy, remains unexplored. Through the application of rigorous identification strategies on a rich data set from a large sharing economy platform, this study empirically investigates providers’ service refusal decisions. The results suggest that service providers on the investigated platform are more likely to refuse service to new users than to repeat-purchase users. This phenomenon is weakened by the increased business tenure and business scale of the providers (i.e., their tenure on the platform and the size of their user base, respectively), but is strengthened by an increase in their refusal experience (i.e., refusal ratio). Our empirical findings provide important contributions to the literature on the sharing economy and online service management. The findings also provide insightful managerial implications to online service providers, users, and platform managers in the sharing economy.

Keywords: Service Refusal, Online Service Providers, New Users, Repeat-Purchase Users, Sharing Economy

Suggested Citation

Liu, Miaomiao and Zhang, Cheng and Lin, Zhijie and Tan, Yong, Service Refusal in the Sharing Economy: Evidence of the New-User Bias (March 21, 2020). Available at SSRN: https://ssrn.com/abstract=3558354 or http://dx.doi.org/10.2139/ssrn.3558354

Miaomiao Liu

Fudan University - School of Management ( email )

No. 670, Guoshun Road
No.670 Guoshun Road
Shanghai, 200433
China

Cheng Zhang

Fudan University, School of Management ( email )

#670 Rd Guoshun, Room718
Shanghai, 200433
China

HOME PAGE: http://homepage.fudan.edu.cn/~zccheng

Zhijie Lin (Contact Author)

Tsinghua University - School of Economics and Management ( email )

Haidian District
Beijing, Beijing 100084
China

Yong Tan

University of Washington - Michael G. Foster School of Business ( email )

Box 353226
Seattle, WA 98195-3226
United States

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