Sharing Economy and Network Economy: A Study on Airbnb and its Impact on Hotel Industry

Running head: ACCOMMODATION
Accommodation
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Introduction:
This study is consisting the discussion regarding the network economy and sharing
economy. Sharing economy is an extensive term for a developing set of commercial models,
podiums and connections. Under sharing economy there is a wide range while in this study
the discussion will be held on Airbnb (Mahadevan 2018). Next is the Network economy
which is the developing economic command in the info civilization. Here in this study, the
discussion will be held on the various features of both sharing economy and networking
economy
Sharing economy and Network Economy:
Sharing economy, is comprised of many names such as, commons-built peer
invention, collaborative production, peer-topper, access economy, collaborative consumption,
and mesh. An encircling description of these frugalities is possible to stay indefinable. The
sharing economy specifies, distributing the knowledge of products and facilities to improve
and exchange them. The scenery of sharing economy is divided into six characters –Zopa,
Airtasker, Open Shed, Airbnb, Kickstarter and Uber.
Network Economy originates from the chief characteristic of the services of the
products which is constructed by the help of social networks which is effective on
international scales. The network economy is defined after a sum of viewpoints those are,
value networks, modification of the industrial budget, academic property rights, global scale,
and information and digital organization (McCulloch and McGarry 2017). Network economy
is the worth which is shaped and collective by all the individuals residing in a network
moderately than by discrete companies.

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Sharing economy vs Network economy:
Uber and Airbnb are considered as Sharing Economy which explains idea and business
between specific customers thus, castoff as a wordy perception. To save possessions
customers surrendering each other momentary entree which is known as sharing
economy thus is different from network economy.
Sharing Economy supports dealing among customers not specifies about leasing or
renting products from a company. In the sharing economy customer provides each other a
momentary admittance to a product but the ownership is not transferred but in network
economy the product is sold, and the ownership too is sold as happens in quikr, or ebay the
networking sites of product exchange. Sharing is the resourceful usage of physical
possessions and not considers isolated entities transporting a service to each other.
Despite everything, people cannot go unemployed but physical products go
unemployed. Internet stages which carry clients composed to deliver services with each
other to epitomize the required economy (McCulloch and McGarry, 2017). For example,
Task Rabbit is a platform, through which individuals are hired to bring out labour
everywhere round the house.
Airbnb a part of sharing economy or of network economy:
Airbnb is a part of sharing economy as well as the network economy. Two parties to
an Airbnb conversation are the travellers and the hosts are required to get registered on the
website that is maintained by the Airbnb. Hosts lean their requirements may be anigloo, an
entire apartment, a castle, a chamber in a house (Katsumura et al. 2018). Travellers are then
required to browse and make bookings on these schedules. Airbnb revenues a guest facility
payment of about 6-12% each time of booking a reservation. The wish for social interface
is frequently perceived as the key chauffeur overdue the expansion of the wonder. The