Question 1

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

False

Question 2

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

Accepted Answer

General Motors invested $500 million in Lyft in 2016, becoming a significant backer of the ride-sharing company.

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 in sharing economy marketplaces do not necessarily have a substantial advantage due to cheaper inventory acquisition. In fact, early movers often benefit from network effects and established trust, making it harder for late-movers to compete.

Question 4

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

The answer of Crowdsourcing has a number of benefits, but...

Question 5

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

Accepted Answer

The answer of _______ mayor has voiced support for Uber,...

Question 6

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 dynamic pricing, also known as surge pricing, which adjusts the price of rides based on real-time demand and supply conditions. During peak periods or times of high demand, prices increase to encourage more drivers to offer rides, thereby balancing supply and demand.

Question 7

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 8

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

Zilok operates on a model where individuals can rent out their own items to others, making them 'citizen suppliers'. Chegg, on the other hand, maintains its own inventory, primarily of textbooks and educational materials, which it rents out to students.

Question 9

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

Many firms in the sharing economy and collaborative consumption have attracted substantial venture capital investment due to their innovative business models and potential for rapid growth, as seen with companies like Uber, Airbnb, and Lyft.

Question 10

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 11

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 12

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 13

Highly _______ markets are especially ripe for rollup in electronic marketplaces

Accepted Answer

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

Question 14

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 15

Why are sharing economy marketplaces so attractive to consumers?

Accepted Answer

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

Question 16

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

Accepted Answer

Social media profiles can be analyzed for inconsistencies or patterns that suggest fraudulent activity, helping in the identification and prevention of online fraud.

Question 17

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 18

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 19

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

Accepted Answer

The question states that "some 44 percent of the US and Canadian population have participated in the sharing economy". This means that at least 44% of the population has participated, which is true.

Question 20

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...

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