Question 1

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

This statement is not true. The sharing economy and collaborative consumption have received substantial venture capital investment in recent years, with companies such as Uber, Airbnb, and WeWork receiving billions of dollars in funding. While there may be perceived risks associated with these business models, they have nonetheless attracted significant investment.

Question 2

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 provides inventory through participating citizen suppliers, while Chegg owns its own inventory.

Question 3

GM has invested half a billion dollars in Uber-competitor ______.

Accepted Answer

Lyft

Question 4

Why were fashion firms initially threatened by Rent the Runway and why has their position evolved over time?

Accepted Answer

The answer of Why were fashion firms initially threatened by...

Question 5

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 6

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 7

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 8

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 9

Which of the following is *not* an example of larger, conventional firms working with sharing economy startups?
A) Apple's purchase of Beats to give new musical artists more exposure.
B) Condé Nast's investment in Rent the Runway.
C) Google's investment in Uber.
D) Walgreens' partnership with TaskRabbit.
E) W Hotel partnering with Desks Near Me.

Accepted Answer

Apple's purchase of Beats was not related to the sharing economy or working with a startup in the sharing economy. It was a strategic move to expand Apple's presence in the music industry.

Question 10

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 11

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 12

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 they often face higher acquisition costs to build inventory and must compete against established firms with established user bases and reputations.

Question 13

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 14

Highly _______ markets are especially ripe for rollup in electronic marketplaces

Accepted Answer

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

Question 15

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

Accepted Answer

Social media profiles can help verify a person's identity and detect fraudulent behavior or scams. Many financial institutions and online services also use social media profiles to authenticate user identities and prevent fraud.

Question 16

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 17

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's pricing model is based on demand and supply. During peak periods, such as rush hour or during events, demand for rides increases and so does the price, which incentivizes more drivers to come online and meet the demand. This is known as "surge pricing."

Question 18

_______ 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 19

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

Accepted Answer

According to a 2018 survey by PwC, 44 percent of the US and Canadian population have participated in the sharing economy, with eBay and Craigslist being included in the definition of sharing economy platforms.

Question 20

Why are sharing economy marketplaces so attractive to consumers?

Accepted Answer

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

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