How resilient are sharing economy platforms during pandemic times?

Paul Belleflamme, Muxin Li (), Anaïs Périlleux () and Alain Strowel
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Alain Strowel: Université catholique de Louvain

No 2021008, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We contribute to the discussion on the resilience of sharing economy platforms (SEPs) in pandemic times. We distinguish SEPs according to how the pandemic affects their respective supply and demand sides (both sides contract, sides get unbalanced, or both sides expand). Within each category, we discuss how SEPs (both for-profit and prosocial) bear up against the threats and/or exploit the opportunities raised by the pandemic; we also compare SEPs to “pipelines” (integrated firms). Analyzing specific examples through the lens of management science, economics and legal studies, we formulate three conjectures: (1) although SEPs may benefit from lower operating costs in the short run, network effects might accelerate their decline in the long run; (2) yet, network effects also make SEPs better-equipped than pipelines to seize new opportunities emerging in pandemic times; (3) prosocial SEPs are more flexible than profit-oriented SEPs in responding to social needs during difficult times.

Keywords: Digital platforms; resilience; sharing economy; Covid-19 (search for similar items in EconPapers)
JEL-codes: K24 L21 L31 L86 M13 M14 (search for similar items in EconPapers)
Pages: 16
Date: 2021-07-01
New Economics Papers: this item is included in nep-cta and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2021008

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