Power in the Sharing Economy University Witten/Herdecke, May 6th - - PowerPoint PPT Presentation
Research Talk Power in the Sharing Economy University Witten/Herdecke, May 6th 2017 Page 2 More and more Items of Everyday Life are shared Power in the Sharing Economy through a fast growing Number of Internet Platforms CARS GARDENS AND
University Witten/Herdecke, May 6th 2017
Power in the Sharing Economy Page 2 More and more Items of Everyday Life are shared
through a fast growing Number of Internet Platforms
SPORTS GEAR CARS APARTMENTS GARDENS AND TOOLS HOUSEHOLD ITEMS ELECTRONICS AND MEDIA
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We want to identify power imbalances in the sharing economy and measures to ameliorate their effects.
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Platform
Platforms facilitate the Sharing Economy – Platforms are however not neutral
Service 1 Service Consumer n Service Provider 1 Service Provider n Service Consumer 1 Service n
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Systematic reasons why the provider tends to wield less power than the platform side.
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Take it or Leave it: Voice and Exit in the Sharing Economy
Bargaining power in the sharing economy is the ability to communicate, negotiate, and influence users’ own activity, i.e. price setting, termination, terms and conditions....
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An Employee by any other Name: Provider Classification
Who wins in the battle over status designation as either ‘employee’ or ‘third-party independent contractor’? What is there to gain? What is there to lose?
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I Accept: Defining the Terms of Exchange
The human limitations of information processing when it comes to ‘terms and conditions’ contracts enables sharing platforms to unilaterally determine the terms of exchange.
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Knowledge is Power: Information Asymmetries
Information asymmetries (in platforms’ favor) limit the capabilities of users to assess the profitability or parameters of sharing transactions. Is this true micro-entrepreneurship?
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Opening and Closing the Channels of Communication
Platforms mediate communication through software, determining what, how, and when comments can be made by users.
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See you in Court (or not): Dispute Resolution
Arbitration clauses deny users the option of legal recourse and ban on technical auditing ensures disagreements will be resolved in the platforms’ favor.
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Individual to Group: Soft and Hard Collective Action
Decentralization and hierarchization among users acts as a significant barrier to group identification and subsequent collective action.
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Individual
Group Identification
SOFT ACTION e.g., blogs, fora,
HARD ACTION e.g., Unionization, Strikes, Lobbying Dec Decentralizatio ion + + Hie Hierarchizatio ion Acti ction Lit Literacy + + Fea Fear of
Retr tribution
through Globalization Physical Distance
… Individual Individual
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Information and decision imbalances imbued into technology.
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Algorithmic Reality: The Invisible Architectures of Power
Algorithms are the new ‘middle men’ of business, determining the limits and nature of interaction between platforms and users.
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Dynamic Pricing: Consumer Management & Manipulation
Data privilege enables platforms to discover and exploit the limits of each user’s price points. How much are you willing to pay for a ride at night? At rush hour? With 1% battery life?
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Algorithm is your Boss: Management through Software
Computerized monitoring discourages ‘down-time’ and limits individual agency…. but also increases oversight and safety for customers. How much is too much oversight?
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Platform Consumer Provider
Transaction Request Payment Matches/ Presents Options Rating/Review
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False Objectivity in Search and Matching Algorithms
While helpful, algorithms on for-profit platforms are not neutral. They are strategically designed and skewed towards private interests.
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SuperHosts: Reputation Mechanisms and Hierarchies
Hierarchical ordering can create distinct circuits of high-status participants and low-status participants, dividing the group in the sharing economy on a value basis.
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Super-providers Failed Providers Successful (semi-professional) Successful Providers (doing ok)
Platform Policies
distinction markers
Rating/Ranking
demographically desirable
Platform Off- Platform
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Bias and Manipulation with Reputation Mechanisms
Bias, including the overly positive valence of user ratings, presents a serious challenge. What can you expect from a five-star rating…and how far would you go to get one?
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Algorithms and Discrimination
User ratings can reinforce discriminatory practices through ratings and selection biases. There is only a thin line between user choice….and user discrimination.
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Five Star Service: Emotional Labor in the Sharing Economy
Rating systems, through their ability to determine the eligibility and ranking of providers, put consumers into the position of control.
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The difficulties of regulating disruptive innovation.
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Between Innovation and Protection: Regulation
Experimental guidelines can regulate innovative products and services until there is more information available or until the technology is widely commercialized.
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Finding Fault, Finding Responsibility: Liability & Regulation
A lack of clarity over service legality leaves users potentially liable for unfortunate repercussions.
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Quis Custodiet Ipsos Custodes: Approaching Self-Regulation
Certain areas of the sharing economy can be regulated, such as insurance requirements, while
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The Rhetoric of Sharing: Framing and Narratives
The initial framing of issues in the media has created path dependencies which determine the agenda for future policy discourses and debates.
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From Disruption to Business-as-usual
Sharing economy platforms continue to ‘disrupt’ traditional businesses, leveraging a power dynamic over other platforms, often as their primary strategy for growth.
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Market Freedom Regulatory Control Voluntary Non-Voluntary Marketing Narratives Self-Regulation Governmental Regulation Co-Regulation Taxes Corporate Transparency Prohibition Consumer Protection Regulation Anti-Discrimination Regulation Cultural and Social Norms Corporate Social Responsibility Voluntary Partnerships License Requirements
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Power in the Sharing Economy Page 36 General implications
Language and Narratives Regulatory Confusion Information Asymmetries Algorithmic Intermediation
Power in the Sharing Economy Page 37 Implications for Platforms
Improved Channels
Centralized Guidelines over Rating Valence Transparency with Terms and Conditions Information Sharing with Stakeholders Reduction of Barriers for Technical Auditing and Arbitration Consistency over Eligibility and Termination Criteria
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Determination of Status Fair Rating Systems Informed Consent Avoid Lock-In Effects Collective Identity and Action Price Control
Power in the Sharing Economy Page 39 Implications for Consumers
Self Awareness Pop the Filter Bubble Open Communication Vote with your Feet Insurance and Legal Awareness Rating Fairness
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Norwegian Business School (BI) Nordic Center for Internet & Society
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