Ubernomics: The Rise of Uber, Airbnb, and the Sharing Economy

Russell Roberts, the John and Jean De Nault Research Fellow, discusses the sharing economy, using Airbnb and Uber as case studies. Through a series of vignettes, Roberts argues that the rating system builds trust between strangers and therefore lowers the transaction costs of providing and seeking services outside the traditional market. He then talks about the primary critiques of the sharing economy, especially surge pricing. He ends with some thoughts on the significance of the sharing economy.