IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v20y2020i3d10.1007_s10660-018-09328-1.html
   My bibliography  Save this article

The market impacts of sharing economy entrants: evidence from USA and China

Author

Listed:
  • Yue Guo

    (Hohai University
    King’s College London)

  • Fu Xin

    (Hohai University)

  • Xiaotong Li

    (University of Alabama in Huntsville)

Abstract

This paper studies the link between the diffusion of the sharing economy and traditional mature industries by empirically examining the economic impacts of sharing economy entrants. This study adds to the ongoing debate over whether and how ride-hailing platforms influence new car sales in USA and China. Our results suggest that the short-term impact of Didi Chuxing’s entry on new car sales is positive. Unlike the effect of Didi Chuxing on new car sales in China, Uber’s entry negatively influences new car sales in USA. The entry of Didi Chuxing is related to a 9.24% increase in new car sales in China and the entry of Uber is related to an 8.1% decrease in new car sales in USA. We further empirically confirm that the impact of ride-hailing companies is trivial in small cities.

Suggested Citation

  • Yue Guo & Fu Xin & Xiaotong Li, 2020. "The market impacts of sharing economy entrants: evidence from USA and China," Electronic Commerce Research, Springer, vol. 20(3), pages 629-649, September.
    • Handle: RePEc:spr:elcore:v:20:y:2020:i:3:d:10.1007_s10660-018-09328-1
    DOI: 10.1007/s10660-018-09328-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-018-09328-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-018-09328-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Christopher S. Carpenter, 2005. "Heavy Alcohol Use and the Commission of Nuisance Crime: Evidence from Underage Drunk Driving Laws," American Economic Review, American Economic Association, vol. 95(2), pages 267-272, May.
    2. Susan Athey & Scott Stern, 2002. "The Impact of Information Technology on Emergency Health Care Outcomes," RAND Journal of Economics, The RAND Corporation, vol. 33(3), pages 399-432, Autumn.
    3. Fleura Bardhi & Giana M. Eckhardt, 2012. "Access-Based Consumption: The Case of Car Sharing," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(4), pages 881-898.
    4. repec:cdl:itsrrp:qt0850h6r5 is not listed on IDEAS
    5. repec:cdl:itsrrp:qt3bn9n6pq is not listed on IDEAS
    6. Robert Seamans & Feng Zhu, 2014. "Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers," Management Science, INFORMS, vol. 60(2), pages 476-493, February.
    7. repec:cdl:itsdav:qt0850h6r5 is not listed on IDEAS
    8. Judd Cramer & Alan B. Krueger, 2016. "Disruptive Change in the Taxi Business: The Case of Uber," American Economic Review, American Economic Association, vol. 106(5), pages 177-182, May.
    9. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    10. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    11. Ginger Zhe Jin & Phillip Leslie, 2003. "The Effect of Information on Product Quality: Evidence from Restaurant Hygiene Grade Cards," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 409-451.
    12. Benjamin Edelman & Michael Luca & Dan Svirsky, 2017. "Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 1-22, April.
    13. Jason Chan & Probal Mojumder & Anindya Ghose, 2019. "The Digital Sin City: An Empirical Study of Craigslist’s Impact on Prostitution Trends," Service Science, INFORMS, vol. 30(1), pages 219-238, March.
    14. Agatz, Niels A.H. & Erera, Alan L. & Savelsbergh, Martin W.P. & Wang, Xing, 2011. "Dynamic ride-sharing: A simulation study in metro Atlanta," Transportation Research Part B: Methodological, Elsevier, vol. 45(9), pages 1450-1464.
    15. Carpenter, Christopher, 2005. "Youth alcohol use and risky sexual behavior: evidence from underage drunk driving laws," Journal of Health Economics, Elsevier, vol. 24(3), pages 613-628, May.
    16. Peter Cohen & Robert Hahn & Jonathan Hall & Steven Levitt & Robert Metcalfe, 2016. "Using Big Data to Estimate Consumer Surplus: The Case of Uber," NBER Working Papers 22627, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yongwook Paik & Christos A. Makridis, 2023. "The social value of a ridesharing platform: a hedonic pricing approach," Empirical Economics, Springer, vol. 64(5), pages 2125-2150, May.
    2. Oksana Loginova & X. Henry Wang & Qihong Liu, 2022. "The impact of multi-homing in a ride-sharing market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 239-254, August.
    3. Yingjie Zhang & Beibei Li & Sean Qian, 2023. "Ridesharing and Digital Resilience for Urban Anomalies: Evidence from the New York City Taxi Market," Information Systems Research, INFORMS, vol. 34(4), pages 1775-1790, December.
    4. Yongwook Paik & Sukhun Kang & Robert Seamans, 2019. "Entrepreneurship, innovation, and political competition: How the public sector helps the sharing economy create value," Strategic Management Journal, Wiley Blackwell, vol. 40(4), pages 503-532, April.
    5. Berger, Thor & Chen, Chinchih & Frey, Carl Benedikt, 2018. "Drivers of disruption? Estimating the Uber effect," European Economic Review, Elsevier, vol. 110(C), pages 197-210.
    6. Agam Gupta & Biswatosh Saha & Parthasarathi Banerjee, 2018. "Pricing decisions of car aggregation platforms in sharing economy: a developing economy perspective," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(5), pages 341-355, October.
    7. Mosquera, Roberto, 2024. "Stuck in traffic: Measuring congestion externalities with negative supply shocks," Regional Science and Urban Economics, Elsevier, vol. 108(C).
    8. Nicolai Brachowicz & Judit Vall Castello, 2019. "Is changing the minimum legal drinking age an effective policy tool?," Health Economics, John Wiley & Sons, Ltd., vol. 28(12), pages 1483-1490, December.
    9. Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb, Hotels, and Localized Competition," Discussion Papers of DIW Berlin 1889, DIW Berlin, German Institute for Economic Research.
    10. Xavier Fageda, 2021. "Measuring the impact of ride‐hailing firms on urban congestion: The case of Uber in Europe," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1230-1253, October.
    11. Shagun Tripathi & Georgios Petropoulos & Harris Kyriakou, 2025. "Assessing the Impact of Algorithmic Quantity Regulations on Sharing Platforms: Evidence from Airbnb in Paris," CESifo Working Paper Series 11811, CESifo.
    12. Francis, Andrew M. & Mialon, Hugo M. & Peng, Handie, 2012. "In sickness and in health: Same-sex marriage laws and sexually transmitted infections," Social Science & Medicine, Elsevier, vol. 75(8), pages 1329-1341.
    13. Christopher Carpenter & Carlos Dobkin, 2011. "The Minimum Legal Drinking Age and Public Health," Journal of Economic Perspectives, American Economic Association, vol. 25(2), pages 133-156, Spring.
    14. Rong, Ke & Luo, Yining, 2023. "Toward born sharing: The sharing economy evolution enabled by the digital ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    15. Geng Sun & Yeongin Kim & Yinliang (Ricky) Tan & Geoffrey G. Parker, 2024. "Dinner at Your Doorstep: Service Innovation via the Gig Economy on Food Delivery Platforms," Information Systems Research, INFORMS, vol. 35(3), pages 1216-1234, September.
    16. Zheng, Emily Yiying, 2018. "Can technology really help to reduce underage drinking? New evidence on the effects of false ID laws with scanner provisions," Journal of Health Economics, Elsevier, vol. 57(C), pages 102-112.
    17. Gorkem Turgut Ozer & Brad N. Greenwood & Anandasivam Gopal, 2023. "Digital Multisided Platforms and Women’s Health: An Empirical Analysis of Peer-to-Peer Lending and Abortion Rates," Information Systems Research, INFORMS, vol. 34(1), pages 223-252, March.
    18. Joost Rietveld & Robert Seamans & Katia Meggiorin, 2021. "Market Orchestrators: The Effects of Certification on Platforms and Their Complementors," Strategy Science, INFORMS, vol. 6(3), pages 244-264, September.
    19. Teltser, Keith & Lennon, Conor & Burgdorf, Jacob, 2021. "Do ridesharing services increase alcohol consumption?," Journal of Health Economics, Elsevier, vol. 77(C).
    20. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:elcore:v:20:y:2020:i:3:d:10.1007_s10660-018-09328-1. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.springer.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.