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The Gig Economy Assignment

   

Added on  2020-05-16

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Running head: SHARING OR GIG ECONOMYSharing or Gig EconomyName of the StudentName of the UniversityAuthor Note
The Gig Economy Assignment_1

1SHARING OR GIG ECONOMYIntroduction to Sharing EconomySharing economy refers to all sorts of social and economic activity involving the onlinetransactions. Online transactions are an open source community where sharing of access to goodsand services takes place on peer-to-peer basis.The phrase "sharing economy" started to trend inthe beginning of 2000s, when the factors like Recession, new social technologies, increase in theglobal population growth and resource depletion had led new business structures to emerge.(Hamari, Sjöklint and Ukkonen 2016). In this economy, the trancations are made over theinternet resulting in reduction in the transaction cost. Companies like Uber, Airbnb and manymore are evolving as the most suitable service providers at present. Uber provides transportationservices and through Airbnb, one can book hotels and rental rooms in any part of the worldsitting at a particular location.Network Effect and Transaction CostThe network effect is the phenomenon where the number of user of a particular good orservice is increased day by day and the value commodity to its customer increases. The rise ofthe internet along with the craze for the social media has made a platform of network effect,through which one can get service through just a touch of a button (Boudreau and Jeppesen2015).Transaction cost or substation effect on the other hand refers to the cost that is incurred toenter into a transaction. It includes all the indirect cost attached to obtain the good or the service.Expenses like communication fees, legal charges, and informational cost are termed undertransaction cost.
The Gig Economy Assignment_2

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