Question 1

Crowdsourcing has a number of benefits, but problems include the potential for bias and discrimination. How can crowdsourced ratings also reflect the crowd's bias and reinforce discrimination.

Accepted Answer

Allegations in an Uber driver forum suggest that college students rate older drivers lower; male riders give lower ratings to female drivers who don't respond to their flirtatiousness; drivers with disabilities also experience lower ratings; and black drivers have a lower acceptance rate than whites. A working paper published by Harvard researchers reports bias in Airbnb, claiming that after controlling for factors like location, rental characteristics, and quality, non-black Airbnb hosts in New York City were still able to charge 12 percent more than their black counterparts, and black hosts received a larger penalty for having a poor location when compared to comparable non-black hosts.

Question 2

_______ mayor has voiced support for Uber, seeing it as a safe and popular service among citizens and city visitors.

Accepted Answer

Boston's

Question 3

Which of the following is *not* true regarding the competitive dynamics of most sharing economy marketplaces?
A) Ratings represent a switching cost built over time by early participants in sharing economy marketplaces.
B) Late-movers have a substantial advantage in this market since inventory should be cheaper to acquire for those firms that have entered markets more recently.
C) Network effects should grow over time, favoring firms that got a successful, early start over rivals who arrived late doing the same thing.
D) These are two-sided markets.
E) None of the above - all statements are true.

Accepted Answer

Late-movers do not have a substantial advantage in sharing economy marketplaces, as inventory costs are not necessarily cheaper for those who have entered the market more recently. Instead, early movers may have advantages such as established brand recognition and a larger user base, which can make it difficult for new entrants to compete.

Question 4

If eBay and Craigslist are included, some 44 percent of the US and Canadian population have participated in the sharing economy.

Accepted Answer

The statement is true as per the given data.

Question 5

What is the difference between collaborative consumption firms Zilok and Chegg.
A) Zilok has gone public, Chegg hasn't.
B) Zilok is a service where a person comes to your home to complete a task, Chegg is a rental firm.
C) Zilok provides inventory provided by participating 'citizen suppliers', Chegg owns its own inventory.
D) Zilok is the European equivalent of Chegg.
E) Zilok was purchased by Chegg underscoring the 'winner take all' dynamics of these markets.

Accepted Answer

The main difference between Zilok and Chegg is that Zilok provides inventory that is provided by participating "citizen suppliers" while Chegg owns its own inventory. Option A is incorrect as there is no information provided on whether Zilok or Chegg has gone public. Option B is incorrect as Zilok is a rental service while Chegg is a textbook rental and online tutoring service. Option D is incorrect as Zilok operates globally and not just in Europe. Option E is incorrect as there is no information provided on Zilok being purchased by Chegg.

Question 6

Rent the Runway and Chegg have chosen to purchase their own inventory for rental to customers, rather than relying on inventory provided by participating citizens suppliers. This incurs an additional cost on these firms. Why would they opt to use this model if startup costs are going to be more expensive?

Accepted Answer

The answer of Rent the Runway and Chegg have chosen...

Question 7

Prof. Juliet Schor says that businesses considered to be part of the _________________ can involve the recirculation of goods, increased utilization of durable assets, exchange of services, or the sharing of productive assets

Accepted Answer

The answer of Prof. Juliet Schor says that businesses considered...

Question 8

Why are sharing economy marketplaces so attractive to consumers?

Accepted Answer

The answer of Why are sharing economy marketplaces so attractive...

Question 9

General Motors backed Lyft with more than half a billion dollars.

Accepted Answer

General Motors invested $500 million in Lyft in January 2016.

Question 10

The sharing economy standouts differ from earlier efforts in that their efficiency is enhanced through streamlined coordination and broader reach by leveraging the ________________.

Accepted Answer

The answer of The sharing economy standouts differ from earlier...

Question 11

Citizen suppliers in the sharing economy may find their _______ costs increase due to increased product use and an increase in perceived risk over time.

Accepted Answer

The answer of Citizen suppliers in the sharing economy may...

Question 12

Another major concern for firms in the sharing economy is uncertainty around the ability of these firms to continue to consider their workers as ____________ and not employees.
a. investors
b. critics
c. independent contractors
d. liabilities
e. none of the above

Accepted Answer

The answer of Another major concern for firms in the...

Question 13

Given examples of firms in the sharing economy that focus on the following categories: goods, transportation, and capital provision. List markets challenged in each of these areas.

Accepted Answer

The answer of Given examples of firms in the sharing...

Question 14

Firms in the so-called "sharing economy" fuel more efficient matching of ___________ and __________, lower costs, enable more efficient resource use, and provide a level of reach and services heretofore unavailable

Accepted Answer

The answer of Firms in the so-called "sharing economy" fuel...

Question 15

Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract substantial venture capital investment.

Accepted Answer

Recent trends have shown that sharing economy and collaborative consumption firms are actually attracting substantial venture capital investment, indicating that they are becoming less risky in the eyes of investors.

Question 16

What are some concerns regulators have over the sharing economy using independent contractors and not full time employees?

Accepted Answer

The answer of What are some concerns regulators have over...

Question 17

Payment continues to represent a barrier to widespread adoption of the sharing economy, since many consumers feel uncomfortable exchanging cash or financial information with strangers.

Accepted Answer

The answer of Payment continues to represent a barrier to...

Question 18

Highly _______ markets are especially ripe for rollup in electronic marketplaces

Accepted Answer

The answer of Highly _______ markets are especially ripe for...

Question 19

Social media profiles can also be used to fight online fraud.

Accepted Answer

Social media profiles can be used to verify the identity of individuals and businesses, as well as to report and expose fraudulent activities.

Question 20

Uber prices services according to demand. This allows the company to increase rates during peak periods in order to attract more potential suppliers into the market to meet demand.

Accepted Answer

Uber uses surge pricing to increase rates during peak periods, which can incentivize more drivers to come online and meet the higher demand.

Quiz 10: The Sharing Economy, Collaborative Consumption, and Creating More Efficient Markets Through Technology