IDEAS home Printed from https://ideas.repec.org/h/pal/paiecp/978-3-319-47250-8_6.html
   My bibliography  Save this book chapter

The Sharing Economy: Information Cascades, Network Effects and Power Laws

In: How Digital Communication Technology Shapes Markets

Author

Listed:
  • Swati Bhatt

    (Princeton University)

Abstract

Connectivity generates familiarity and induces collaboration, and also the phenomenon of copying, known also as FOMO (fear of missing out). Imitating others’ behavior derives from the social influence of networks which is different from homophily or joining groups with similar characteristics. While financial markets have manifested granularity in the unbundling of functions of financial intermediation, such as payments, risk management, savings and investment, there has also been the formation of OB due to copying. Connectivity has fostered imitation to economize on search costs and to benefit from shared networks. Copying can have adverse consequences, as when all economic agents congregate at the same hub, and, by adopting the same behavior, precipitate disastrous consequences as we saw in the 2008 financial crisis.

Suggested Citation

  • Swati Bhatt, 2017. "The Sharing Economy: Information Cascades, Network Effects and Power Laws," Palgrave Advances in Economics of Innovation and Technology, in: How Digital Communication Technology Shapes Markets, chapter 6, pages 105-118, Palgrave Macmillan.
    • Handle: RePEc:pal:paiecp:978-3-319-47250-8_6
    DOI: 10.1007/978-3-319-47250-8_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:paiecp:978-3-319-47250-8_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.