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A co-utility approach to the mesh economy: the crowd-based business model

Author

Listed:
  • Abeba Nigussie Turi

    (Universitat Rovira i Virgili)

  • Josep Domingo-Ferrer

    (Universitat Rovira i Virgili)

  • David Sánchez

    (Universitat Rovira i Virgili)

  • Dritan Osmani

    (Universitat Rovira i Virgili)

Abstract

We explore the mesh economy applications of co-utility, a new concept describing self-enforcing and mutually beneficial interactions among self-interested agents. We show that the crowdsourcing market is naturally co-utile (without additional incentives). Furthermore, we analyze the investment crowdfunding industry and propose solutions that can neutralize the fear and mistrust effects underlying its market in order to make it strictly co-utile. Up on our analysis under the co-utility framework, we corroborate that collaboration is always rationally sustainable, as long as the system is co-utile and that all co-utile outcomes are Pareto-optimal; but not all Pareto-optimal outcomes are co-utile. In addition, reciprocity and hybridity equilibrium are compatible with co-utility in specific cases at which they provide Pareto-optimal outcomes. This methodology of analysis within the framework of co-utility can be extended beyond the crowd-based business models and promises to significantly contribute to economic theory.

Suggested Citation

  • Abeba Nigussie Turi & Josep Domingo-Ferrer & David Sánchez & Dritan Osmani, 2017. "A co-utility approach to the mesh economy: the crowd-based business model," Review of Managerial Science, Springer, vol. 11(2), pages 411-442, March.
    • Handle: RePEc:spr:rvmgts:v:11:y:2017:i:2:d:10.1007_s11846-016-0192-1
    DOI: 10.1007/s11846-016-0192-1
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    References listed on IDEAS

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    Cited by:

    1. Carla Martínez-Climent & Ricardo Costa-Climent & Pejvak Oghazi, 2019. "Sustainable Financing through Crowdfunding," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    2. Zubair Nawaz & Jing Zhang & Rafiq Mansoor & Aboobucker Ilmudeen, 2019. "Gig workers in sharing economy: Conceptualizing Freelancer Value Proposition (FVP) in e-lancing platforms," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 9(6), pages 1-5.
    3. Cayetano Medina-Molina & Manuel Rey-Moreno & J. Augusto Felício & Inmaculada Romano Paguillo, 2019. "Participation in crowdfunding among users of collaborative platforms: the role of innovativeness and social capital," Review of Managerial Science, Springer, vol. 13(3), pages 529-543, June.
    4. Chandna, Vallari & Salimath, Manjula S., 2018. "Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship," Journal of Business Research, Elsevier, vol. 84(C), pages 162-174.
    5. Cai, Wanxiang & Polzin, Friedemann & Stam, Erik, 2021. "Crowdfunding and social capital: A systematic review using a dynamic perspective," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    6. Yue Chen & Wentao Zhang & Xiangbin Yan & Jiahua Jin, 2020. "The life-cycle influence mechanism of the determinants of financing performance: an empirical study of a Chinese crowdfunding platform," Review of Managerial Science, Springer, vol. 14(1), pages 287-309, February.
    7. Ali E. Akgün & Halit Keskin & Sumeyye Y. Kırçovalı, 2019. "Organizational wisdom practices and firm product innovation," Review of Managerial Science, Springer, vol. 13(1), pages 57-91, February.

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    More about this item

    Keywords

    Business model; Co-utility; Crowdsourcing; Investment crowdfunding; Mesh Economy;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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