Legal and Institutional Impediments to Sharing Economy: Case of Uber’s Non-Uptake in Hong Kong

Iu Kwan-Yuen () and Cheuk Paul W. H.
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Iu Kwan-Yuen: Pupil Barrister at Albert Luk's Chambers, Hong Kong, China
Cheuk Paul W. H.: Chinese University of Hong Kong - Faculty of Law, Hong Kong, China

Asian Journal of Law and Economics, 2023, vol. 14, issue 1, 17-45

Abstract: Technological innovations can significantly impact market structures and the behavior of actors, necessitating legal changes. However, in the face of technological changes brought by sharing economy, there is a differential in the responsiveness of rule-making institutions across different jurisdictions. This article analyses the rule-making institutions that allow for the regulatory changes procured by Uber and the institutional impediments that may restrict jurisdiction in accommodating this type of crowd-based technological disrupters. Uber’s non-adoption in Hong Kong is compared to its success in the United States to evaluate the limitations of rule-making institutions in responding to the legal change required by sharing economy companies. Changes in the rule-making institutions themselves may be needed to accelerate technological innovations and economic growth. This article suggests that there is a lack of institutional adaptability in Hong Kong, where the rule-making institutions are unable to facilitate potential regulatory reform. While the feasibility of changing a particular jurisdiction’s electoral system and political systems may be low, jurisdictions can improve the accountability of their executive regulators by modifying the incentive structure.

Keywords: law and technology; regulations; sharing economy; creative disruption; principal-agent problem (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1515/ajle-2022-0111

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