Publications
Publications
- 2016
- Annual Review of Economics
Peer-to-Peer Markets
By: Liran Einav, Chiara Farronato and Jonathan Levin
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.
Keywords
Peer-to-peer; Online Platforms; Matching; Innovation; Market Platforms; Marketplace Matching; Market Design; Search Technology; Technology Adoption; Network Effects; Market Entry And Exit
Citation
Einav, Liran, Chiara Farronato, and Jonathan Levin. "Peer-to-Peer Markets." Annual Review of Economics 8 (2016): 615–635.
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