The New Business Model : Consumer's Optimal Economic Interests By Evaluating Pro And Cons

1193 Words Feb 24th, 2016 5 Pages
Introduction

The dramatic development of the Internet is making our life to constantly change and improve. In the past two years, some cellphone application (app) were in the explosive growth, for example, Airbnb and Uber. All the great successes they have made based on a concept - the “sharing economy”. The logic of these software is similar: the hands of users will be idle vehicles or take out housing resources, Uber and Airbnb will release these resources, in the form of information to the mobile terminal software and provide services to customers at low prices (Cannon & Summers,2014; Matzler, Veider & Kathan, 2014). The new business model brings customers significances, nevertheless, the rationality of the "Sharing economy" mode still exist many disputes, such as its regulatory responsibilities causes safety concerns. This paper will discuss whether the “sharing economy” is consumer 's optimal economic interests by evaluating pro and cons respectively. Benefits to the consumer

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In numerous definition, Economist (2013) points out that the sharing economy needs information technology platforms in the market, which founded by a third party. With the aid of these platforms, individuals are able to exchange their underutilize items, share their knowledge, experience, or to raise funds for the Enterprise or an innovation project (Hartl, Hofmann & Kirchler, 2015). This gives consumer opportunities to use other’s property to make idle assets more…

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