SHARING ECONOMY, REGULATORY ARBITRAGE, AND URBAN GOVERNANCE: HOW CITY SPACE SHAPES ECONOMIC GROWTH AND INNOVATION.
The sharing economy is flourishing by reintegrating assets and individuals in a determinedly deep-rooted, place-based manner (Barros-Del Rio, 2016; Havu, 2017; Mihaila, Popescu, and Nica, 2016; Popescu et al., 2018) and by supplying groundbreaking solutions to the demandings of life in populous urban regions. Trust mechanisms that are essential to sharing economy platforms produce value by taking actions to certain urban circumstances of crowded, mass indistinctness. Regulatory conditions may confine or alter the provision of urban amenities, shaping the additional capacity that sharing economy companies capitalize on to satisfy demand for services like ride sharing and alternative housings. (Davidson and Infranca, 2016)
2. Literature Review
Sharing companies have identified ways to step on current local regulatory incongruities and hindrances to entry brought about by local law, generating the chance for regulatory arbitrage, because such enterprises establish and organize their activities to bypass local regulation. Such endeavors give rise to frictions (Andrei et al., 2016a, b; Gava, 2016; Michailidou, 2017; Nica, Potcovaru, and Mirica (Dumitrescu), 2017; Popescu et al., 2017a, b, c), as sharing-economy competitors are in conflict with incumbent suppliers at the local level. The concentration and physical closeness that further thick markets for sharing firms indicate that any adverse spillovers are intensified locally. Sharing platforms, by building up utilization of present resources and unraveling additional capacity, may generate concerted, bounded externalities, by swiftly expanded in urban regions. As sharing enterprises are disorganizing established segments of urban economies (Esty, 2017; Life, 2017; Nica, 2015; Popescu and Alpopi, 2017), regulatory arbitrage has been extremely adequate. (Davidson and Infranca, 2016)
Using data from Pew Research Center, I performed analyses and made estimates regarding the debate over the legality of home-sharing services, U.S. users' views of ride-hailing services, and U.S. individuals who expect these services to play a role in managing the customer experience. Empirical and secondary data are used to support the claim that the numerous well-resourced disputes that sharing economy companies are having with city governments have established the conditions of the sharing economy and have altered the character of local government regulation.
4. Results and Discussion
Local governments ask that sharing-economy companies make data concerning their operations public and adhere to current regulations. Insofar as sharing economy companies constrain local governments in the direction of more information-driven policymaking, such endeavors may harmonize demands for superior regulatory unambiguousness by local citizens. As a result of the swiftly unstable underlying forces of the sharing economy and the substantial information it brings about (Bratu, 2016a, b; Holzer, 2017; Mihaila, 2017; Peters, 2017; Teubner, Hawlitschek, and Dann, 2017), cities may examine and alter regulatory reactions taking into account novel data. Grasping the sharing economy as a city phenomenon involves local governments to more comprehensively normalize it (Dusmanescu et al., 2016; Lazaroiu et al., 2017; Nica et al., 2014; Popescu, 2014) and to reflect on how the substantial information it brings about may facilitate more precisely adjusted reactions to its concentrated consequences. The sharing economy has been defined and enhanced through the apportioned disharmonies of local regulatory arrangements, but it is also remodeling cities themselves, by creating novel patterns of local governance and political involvement and by modifying models of advancement and mobility. (Davidson and Infranca, 2016) (Figures 1-6)
Figure 1 The debate over the legality of home-sharing services Percent in each group who have heard... about the debate over whether or not homeowners should be able to legally rent out their homes using services like Airbnb, VRBO or HomeAway A lot A little Nothing at all Have not heard of home-sharing site All adults 7% 15% 23% 52% Home-sharing users 18 36 44 Sources: Pew Research Center; my survey among 2,400 individuals conducted October 2017. Note: Table made from bar graph. Figure 2 Both users and nonusers strongly support the legality of home-sharing services and feel that homeowners using them should not have to pay taxes in order to use them Among individuals who have heard about this debate, percent who say these services should be... Legal but have Legal but should not Not legal to pay taxes have to pay taxes All adults 32% 51% 3% Home-sharing users 30 57 1 Not sure All adults 15% Home-sharing users 12 Sources: Pew Research Center; my survey among 2,400 individuals conducted October 2017. Note: Table made from bar graph. Figure 3 U.S. individuals expect these services to play a role in managing the customer experience Percent of ride-hailing users who think... is/are responsible for ensuring the following aspects of service are achieved Individual drivers App or service Ensuring that drivers are 10% 25% properly trained Ensuring that vehicles are 25 14 clean and safe Both the driver and the app or service Ensuring that drivers are 65% properly trained Ensuring that vehicles are 61 clean and safe Sources: Pew Research Center; my survey among 2,400 individuals conducted October 2017. Note: Table made from bar graph. Figure 4 Both conservative, liberal home-sharing users feel that owners should not have to pay taxes to use these services Percent of U.S. home-sharing users in each group who feel that owners should/should not be required to pay hotel or occupancy taxes to use these services Pay taxes Not pay taxes Rep/Lean Rep 19% 73% Dem/Lean Dem 39 53 Conservative 19 67 Liberal 35 55 Sources: Pew Research Center; my survey among 2,400 individuals conducted October 2017. Note: Table made from bar graph. Figure 5 Home-sharing users view these services as good for people traveling as groups, homeowners looking for extra income Percent of U.S. home-sharing users who feel that the following statements describe these services well or not No Yes Good option for families or others who travel as a group 6% 86% Good way for homeowners to earn extra income 2 84 Less expensive than a hotel 13 74 Best for adventurous travelers 23 54 Located in neighborhoods where it's hard to find hotels 21 52 Not always as appealing as described online 27 43 Are risky to use 56 16 Sources: Pew Research Center; my survey among 2,400 individuals conducted October 2017. Note: Table made from bar graph. Figure 6 U.S. users' views of ride-hailing services Percent of ride-hailing users who feel that the following statements describe these services well or not No Yes Save users time and stress 2% 87% Good jobs for those who want flexible work hours 4 79 Good option for older adults with limited mobility 6 73 Use drivers you feel safe riding with 3 71 Less expensive than a taxi 13 69 More reliable than taxi or public transit 15 61 Good option for people who have trouble hailing cabs 8 55 Serve neighborhoods taxis won't visit 8 49 Used by people who have plenty of transit options 22 44 Good way for children to get around safely 25 35 Collect too much personal info about users 49 12 Sources: Pew Research Center; my survey among 2,400 individuals conducted October 2017. Note: Don't know responses not shown. Note: Table made from bar graph.
Numerous sharing economy firms have thriven via a type of regulatory arbitrage that exploits local administrative challenges. The numerous well-resourced disputes that sharing economy companies are having with city governments have established the conditions of the sharing economy and have altered the character of local government regulation (Buchely, 2016; Lazaroiu, 2017; Moser, 2017; Popescu Ljungholm, 2017a, b; Zogning, 2017) in these essential manners: (i) insofar as the sharing economy flourishes by exploiting the current regulation, it is constraining local governments to more markedly convey and adjust their administrative aims; (ii) local governments are attempting to incorporate register sharing-economy companies in this mechanism by acquiring the massive information such enterprises own; and (iii) the sharing economy, by carrying out particular confined regulations more relevant for local citizens, may have spillover consequences bringing about raised requirements of unambiguousness for local government regulation. (Davidson and Infranca, 2016)
The author confirms being the sole contributor of this work and approved it for publication.
Conflict of Interest Statement
The author declares that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.
Andrei, Jean-Vasile, Mihai Mieila, Gheorghe H. Popescu, Elvira Nica, and Cristina Manole (2016a). "The Impact and Determinants of Environmental Taxation on Economic Growth Communities in Romania," Energies 9(11): 902.
Andrei, Jean-Vasile, Raluca Andreea Ion, Gheorghe H. Popescu, Elvira Nica, and Marian Zaharia (2016b). "Implications of Agricultural Bioenergy Crop Production and Prices in Changing the Land Use Paradigm--The Case of Romania," Land Use Policy 50: 399-407.
Barros-Del Rio, Maria Amor (2016). "On Both Sides of the Atlantic: Migration, Gender, and Society in Contemporary Irish Literature," Journal of Research in Gender Studies 6(2): 83-89.
Bratu, Sofia (2016a). "The Critical Role of Social Media in Crisis Communication," Linguistic and Philosophical Investigations 15: 232-238.
Bratu, Sofia (2016b). "Processes Underlying Audiences' Interactions with Organizations on Social Media," Review of Contemporary Philosophy 15: 132-138.
Buchely, Lina (2016). "Bureaucratic Activism and Colombian Community Mothers: The Daily Construction of the Rule of Law," Contemporary Readings in Law and Social Justice 8(2): 196-242.
Davidson, Nestor M., and John J. Infranca (2016). "The Sharing Economy as an Urban Phenomenon," Yale Law & Policy Review 34(2): 215-279.
Dusmanescu, Dorel, Jean-Vasile Andrei, Gheorghe H. Popescu, Elvira Nica, and Mirela Panait (2016). "Heuristic Methodology for Estimating the Liquid Biofuel Potential of a Region," Energies 9(9): 703.
Esty, Daniel C. (2017). "Toward a Sustainable Global Economy: An Initiative for G20 Leadership," Journal of Self-Governance and Management Economics 5(2): 46-60.
Gava, Alessio (2016). "Why van Fraassen Should Amend His Position on Instrument-mediated Detections," Analysis and Metaphysics 15: 55-76.
Havu, Katri (2017). "The EU Digital Single Market from a Consumer Standpoint: How Do Promises Meet Means?," Contemporary Readings in Law and Social Justice 9(2): 146-183.
Holzer, Harry J. (2017). "Building a New Middle Class in the Knowledge Economy," Psychosociological Issues in Human Resource Management 5(2): 96-126.
Lazaroiu, George (2017). "The Routine Fabric of Understandable and Contemptible Lies," Educational Philosophy and Theory 49(6): 573-574.
Lazaroiu, George, Aurel Pera, Ramona O. Stefanescu-Mihaila, Nela Mircica, and Octav Negurita (2017). "Can Neuroscience Assist Us in Constructing Better Patterns of Economic Decision-making?," Frontiers in Behavioral Neuroscience 11: 188.
Life, Jonathan J. (2017). "An Analysis of Linguistic Normativity and Communication as a Response to Objections to a Biopsychological Foundation for Linguistics," Linguistic and Philosophical Investigations 16: 49-79.
Michailidou, Artemis (2017). "Feminine Cities: New Orleans in the Work of John Gregory Brown," Journal of Research in Gender Studies 7(2): 11-26.
Mihaila, Ramona, Gheorghe H. Popescu, and Elvira Nica (2016). "Educational Conservatism and Democratic Citizenship in Hannah Arendt," Educational Philosophy and Theory 48(9): 915-927.
Mihaila, Ramona (2017). "The Lying Epidemic," Educational Philosophy and Theory 49(6): 580-581.
Moser, Keith (2017). "Michel Serres's Encyclopedic Philosophical Vision of an Ever-Changing Human Landscape," Review of Contemporary Philosophy 16: 11-37.
Nica, Elvira, Gheorghe H. Popescu, Eugen Nicolaescu, and Vlad Denis Constantin (2014). "The Effectiveness of Social Media Implementation at Local Government Levels," Transylvanian Review of Administrative Sciences 10(SI): 152-166.
Nica, Elvira (2015). "Labor Market Determinants of Migration Flows in Europe," Sustainability 7(1): 634-647.
Nica, Elvira, Ana-Madalina Potcovaru, and Catalina-Oana Mirica (Dumitrescu) (2017). "Job Loss, Unemployment, and Perceived Job Insecurity: Their Effects on Individuals' Health and Well-Being," Psychosociological Issues in Human Resource Management 5(2): 193-198.
Peters, Michael A. (2017). "Ecopolitical Philosophy, Education and Grassroots Democracy: The 'Return' of Murray Bookchin (and John Dewey?)," Geopolitics, History, and International Relations 9(2): 7-14.
Popescu Ljungholm, Doina (2017a). "Democratic Forms of Workplace Governance," Analysis and Metaphysics 16: 110-116.
Popescu Ljungholm, Doina (2017b). "Global Policy Mechanisms, Intergovernmental Power Politics, and Democratic Decision-Making Modes of Transnational Public Administration," Geopolitics, History, and International Relations 9(2): 199-205.
Popescu, Gheorghe H. (2014). "FDI and Economic Growth in Central and Eastern Europe," Sustainability 6(11): 8149-8163.
Popescu, Gheorghe H., and Cristina Alpopi (2017). "The EMU and Labor Market Politics: An Update," Economics, Management, and Financial Markets 12(2): 81-87.
Popescu, Gheorghe H., Elvira Nica, Florin Cristian Ciurlau, Mihaela Comanescu, and Teodora Bitoiu (2017a). "Stabilizing Valences of an Optimum Monetary Zone in a Resilient Economy--Approaches and Limitations," Sustainability 9(6): 1051.
Popescu, Gheorghe H., Violeta Sima, Elvira Nica, and Ileana Georgiana Gheorghe (2017b). "Measuring Sustainable Competitiveness in Contemporary Economies--Insights from European Economy," Sustainability 9(7): 1230.
Popescu, Gheorghe H., Nicolae Istudor, Elvira Nica, Jean-Vasile Andrei, and Ion Raluca Andreea (2017c). "The Influence of Land-use Change Paradigm on Romania's Agro-food Trade Competitiveness--An Overview," Land Use Policy 61: 293-301
Popescu, Gheorghe H., Mihai Mieila, Elvira Nica, and Jean Vasile Andrei (2018). "The Emergence of the Effects and Determinants of the Energy Paradigm Changes on European Union Economy," Renewable and Sustainable Energy Reviews 81(1): 768-774.
Teubner, Timm, Florian Hawlitschek, and David Dann (2017). "Price Determinants on Airbnb: How Reputation Pays Off in the Sharing Economy," Journal of Self-Governance and Management Economics 5(4): 53-80.
Zogning, Felix (2017). "Comparing Financial Systems around the World: Capital Markets, Legal Systems, and Governance Regimes," Economics, Management, and Financial Markets 12(4): 43-58.
DOINA POPESCU LJUNGHOLM
University of Pitesti
Received 27 January 2018 * Received in revised form 18 March 2018
Accepted 25 March 2018 * Available online 29 March 2018
|Printer friendly Cite/link Email Feedback|
|Author:||Ljungholm, Doina Popescu|
|Publication:||Geopolitics, History, and International Relations|
|Date:||Jun 1, 2018|
|Previous Article:||DOES XI JINPING'S ANTI-CORRUPTION CAMPAIGN REALLY SUPPORT CLEAN AND TRANSPARENT GOVERNMENT AND MARKET EFFICIENCY.|
|Next Article:||REGULATING THE SHARING ECONOMY AT THE LOCAL LEVEL: HOW THE TECHNOLOGY OF ONLINE LABOR PLATFORMS CAN SHAPE THE DYNAMICS OF URBAN ENVIRONMENTS.|