Pricing in C2C sharing platforms

dc.contributor.authorAngerer, Peter
dc.contributor.authorProvin, Daniel
dc.contributor.authorZimmermann, Steffen
dc.contributor.authorNault, Barrie R.
dc.date.accessioned2020-01-30T22:46:53Z
dc.date.available2020-01-30T22:46:53Z
dc.date.issued2017-07-23
dc.description.abstractSharing platforms such as Zilok.com enable the sharing of durable goods among consumers, and seek to maximize profits by charging transaction-based platform fees. We develop a model where consumers that are heterogeneous in their need to use a durable good decide whether to purchase and share (i.e., be a lender) or borrow (i.e., be a borrower), and a monopoly sharing platform decides on the platform fees. We find first that consumers with a greater need to use a durable good purchase and share, and that consumers with a lesser need borrow. Second, sharing platforms maximize profits only if the supply of a durable good matches demand – that is, the market must clear for platform fees to be profit maximizing. Third, the market-clearing condition requires that lender and borrower fees are classic strategic complements. Fourth, to maintain the market-clearing condition, sharing platforms have to increase their lender fee or decrease their borrower fee in response to increases in the sharing price, increases in usage capacity, and decreases in the purchase price of a durable good, and vice versa. These findings indicate that commonly applied one-sided pricing models in sharing platforms can be improved.en_US
dc.identifier.citationAngerer, P., Provin, D., Zimmermann, S., & Nault, B. R. (2017). "Pricing in C2C Sharing Platforms" (pp. 1–36).en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/37535
dc.identifier.urihttp://hdl.handle.net/1880/111591
dc.language.isoengen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.hasversionacceptedVersionen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.rightsUnless otherwise indicated, this material is protected by copyright and has been made available with authorization from the copyright owner. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.en_US
dc.subjectsharing economyen_US
dc.subjectsharing platformsen_US
dc.subjectdurable gooden_US
dc.subjectconsumer behavioren_US
dc.subjectplatform pricing behavioren_US
dc.titlePricing in C2C sharing platformsen_US
dc.typejournal articleen_US
ucalgary.item.requestcopytrueen_US
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