Peer-to-Peer Markets

Liran Einav, Chiara Farronato and Jonathan Levin

No 21496, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Peer-to-peer markets such as eBay, Uber, and Airbnb allow small suppliers to compete with traditional providers of goods or services. We view the primary function of these markets as making it easy for buyers to find sellers and engage in convenient, trustworthy transactions. We discuss elements of market design that make this possible, including search and matching algorithms, pricing, and reputation systems. We then develop a simple model of how these markets enable entry by small or flexible suppliers, and the resulting impact on existing firms. Finally, we consider the regulation of peer-to-peer markets, and the economic arguments for different approaches to licensing and certification, data, and employment regulation.

JEL-codes: D02 D47 L86 (search for similar items in EconPapers)
Date: 2015-08
New Economics Papers: this item is included in nep-com, nep-ger and nep-ict
Note: IO LE LS PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published as Liran Einav & Chiara Farronato & Jonathan Levin, 2016. "Peer-to-Peer Markets," Annual Review of Economics, vol 8(1), pages 615-635.

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Related works:
Journal Article: Peer-to-Peer Markets (2016)
Working Paper: Peer-to-Peer Markets
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