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How resilient are sharing economy platforms during pandemic times?

Author

Listed:
  • Belleflamme, Paul

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

  • Li, Muxin

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

  • Périlleux, Anaïs

    (Université catholique de Louvain, LIDAM/IRES, Belgium)

  • Strowel, Alain

    (Université catholique de Louvain)

Abstract

We contribute to the discussion on the resilience of sharing economy platforms (SEPs) in pandemic times. We distinguish SEPs according to how the pandemic affects their respective supply and demand sides (both sides contract, sides get unbalanced, or both sides expand). Within each category, we discuss how SEPs (both for-profit and prosocial) bear up against the threats and/or exploit the opportunities raised by the pandemic; we also compare SEPs to “pipelines” (integrated firms). Analyzing specific examples through the lens of management science, economics and legal studies, we formulate three conjectures: (1) although SEPs may benefit from lower operating costs in the short run, network effects might accelerate their decline in the long run; (2) yet, network effects also make SEPs better-equipped than pipelines to seize new opportunities emerging in pandemic times; (3) prosocial SEPs are more flexible than profit-oriented SEPs in responding to social needs during difficult times.

Suggested Citation

  • Belleflamme, Paul & Li, Muxin & Périlleux, Anaïs & Strowel, Alain, 2021. "How resilient are sharing economy platforms during pandemic times?," LIDAM Discussion Papers CORE 2021008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2021008
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    More about this item

    Keywords

    Digital platforms; resilience; sharing economy; Covid-19;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law

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