The contending forces generated by friction between the collaborative platform firms in the paid transportation of people’s market, and the regulation present in anti-trust policies in Costa Rica will be discussed in depth as a means of determining the economic impacts that new regulatory bills may cause.The recent entryof developing countries into the collaborative economy has caused social and economic tensions due to the lack of an updated and rejuvenated legal framework which could reconcile the economic and legal differences.The expected results of a new anti-trust policy to regulate collaborative transportation platform firms in Costa Rica are a higher regulated price, a lower quantity supplied of hailing rides, and a loss of efficiency in the sector consequence of the new technical requirements. The case of Uber Company’s entry in Costa Rica is used to depict these economic effects.
Share nl report for the ministry of economic affairs on the innovation in the...shareNL
This report summarises research on barriers to investment in innovation and whether opportunities are currently feasible or not in the collaborative economy, and in the area of green growth. For this purpose, multiple roundtable meetings have been organised and interviews have been held with entrepreneurs, academics, legal experts, representatives of companies and government, who are active in the field of the collaborative economy. This summary sets outs the priority aspects of the collaborative economy which require action.
The collaborative economy contributes to green growth, but its potential can be utilised better. This can be achieved by looking at the opportunities and barriers, which now exist because the difference between producers and consumers has become more blurred, as well as changing trends of consumers renting or sharing products rather than owning products. As a result new risks and questions arise concerning liability, taxation, and competition. This report suggests a role for the government in four areas: (1) to ensure that current legislation is clear in how it applies to the collaborative economy; (2) to provide regulatory flexibility for experiments; (3) to monitor relevant developments and safeguard the public interest; and (4) to address the barriers that have been identified in this research.
Mayor and Executive Board of the Municipality of Amsterdam have agreed on the Action Plan on Sharing Economy and herewith gives space to the opportunities the sharing (or collaborative) economy offers to the city. Sharing economy is a broad concept, amongst other things it is about making more efficient use of goods, services and skills. By using online platforms, people can for example exchange, rent and borrow stuff from each other more easily. The consumer is at the centre and gets more affordable and easier access to services and goods. The Mayor and Executive Board want to stimulate the sharing economy where possible without losing sight of any excesses. Risks include an uneven playing field or a lack of social security. Thus the sharing economy is not a question of ban or authorize, but of monitor and seize opportunities where possible (March 2016).
Share nl collaborative economy environmental impact and opportunities reportshareNL
This research explores the environmental impact of the collaborative economy: an emerging and varied phenomenon on which little information is available. The research focuses particularly on goods within the collaborative economy, but also provides a description of the entire collaborative economy landscape and its sustainability impact. The broad conclusion is that the sharing of goods has significant positive environmental impact because under-used capacity is exploited to accommodate consumption needs.
Learn why Latin American consumers are changing their perceptions of personal mobility. And what the range of innovative new transport solutions (public, shared, crowd-powered, sustainable and more) means for all businesses.
Share nl report for the ministry of economic affairs on the innovation in the...shareNL
This report summarises research on barriers to investment in innovation and whether opportunities are currently feasible or not in the collaborative economy, and in the area of green growth. For this purpose, multiple roundtable meetings have been organised and interviews have been held with entrepreneurs, academics, legal experts, representatives of companies and government, who are active in the field of the collaborative economy. This summary sets outs the priority aspects of the collaborative economy which require action.
The collaborative economy contributes to green growth, but its potential can be utilised better. This can be achieved by looking at the opportunities and barriers, which now exist because the difference between producers and consumers has become more blurred, as well as changing trends of consumers renting or sharing products rather than owning products. As a result new risks and questions arise concerning liability, taxation, and competition. This report suggests a role for the government in four areas: (1) to ensure that current legislation is clear in how it applies to the collaborative economy; (2) to provide regulatory flexibility for experiments; (3) to monitor relevant developments and safeguard the public interest; and (4) to address the barriers that have been identified in this research.
Mayor and Executive Board of the Municipality of Amsterdam have agreed on the Action Plan on Sharing Economy and herewith gives space to the opportunities the sharing (or collaborative) economy offers to the city. Sharing economy is a broad concept, amongst other things it is about making more efficient use of goods, services and skills. By using online platforms, people can for example exchange, rent and borrow stuff from each other more easily. The consumer is at the centre and gets more affordable and easier access to services and goods. The Mayor and Executive Board want to stimulate the sharing economy where possible without losing sight of any excesses. Risks include an uneven playing field or a lack of social security. Thus the sharing economy is not a question of ban or authorize, but of monitor and seize opportunities where possible (March 2016).
Share nl collaborative economy environmental impact and opportunities reportshareNL
This research explores the environmental impact of the collaborative economy: an emerging and varied phenomenon on which little information is available. The research focuses particularly on goods within the collaborative economy, but also provides a description of the entire collaborative economy landscape and its sustainability impact. The broad conclusion is that the sharing of goods has significant positive environmental impact because under-used capacity is exploited to accommodate consumption needs.
Learn why Latin American consumers are changing their perceptions of personal mobility. And what the range of innovative new transport solutions (public, shared, crowd-powered, sustainable and more) means for all businesses.
Allianz Risk Pulse: The Future of Individual MobilityOpen Knowledge
The nature of mobility is changing at incredible speed.
Ongoing trends like urbanization, rising fuel costs, environmental
consciousness, an aging society and digitalization
have influenced mobility highly and will continue to do so in
the future. Today’s consumers behave in a different way than
even a few years ago and the car is losing its relevance as a
status symbol.
Presented at Communication World, Munich
- Intelligent networking of different means of transportation play a central role.
- Mobile devices are growing strongly - in number as well as functionality, to provide the opportunity for new business models
- Companies need to develop a mobile strategy and address the new challenges on a broad basis
By Andreas Hein
Collaborative Economy: a p2p renaissance. IAAC Winter Lectures 2016. The impact of sharing economy and the emergence of sharing cities around the world: Seoul, Amsterdam, Milan, Bologna
The Legal Implications of Sharing Economy Models: A Deeper Look into Uber’s I...TAG Alliances
Created and Presented by: Christopher S. Hill of Kirton McConkie
At our Santa Monica breakout session, we were introduced to several legal issues that have been impacted by the rapid growth of sharing economy businesses. Uber’s legal challenges provide a template for many of these sharing economy legal issues, from unfair competition to employment and agency. Courts are ruling that traditional analytical models and precedent do not translate and apply well to sharing economy circumstances. This session will provide a more in-depth report on several legal issues facing Uber and other sharing economy businesses such as Airbnb, and conclude with a roundtable-style discussion of experiences in these markets faced by the attendees.
White Paper: Innovation in TransportationIdeaScale
In this white paper, we discuss the four most pressing areas in transportation that require industry-wide innovation and how the crowd can be a resource to solve concerns in these areas:
- Traveler Experience
- Costs
- Security and Safety
- Technology
Can Government be a good eBayer? Using online auctions to sell surplus property ePractice.eu
Authors: Enrico Ferro Lucy Dadayan
E-commerce in general, and online auctions in particular, represent important examples of how information and communication technologies have been employed by public organizations to gain benefits in both efficiency and effectiveness.
The Sharing Economy: Implications for Property & Casualty InsurersCognizant
Collaborative consumption, also known as the "Peer-to-Peer" or "P2P" economy, poses significant risks for insurers. At the same time, consumers' willingness to share and utilize assets and services like Uber and Airbnb offers significant revenue opportunities for P&C carriers at a time when most have experienced flat-line growth.
Allianz Risk Pulse: The Future of Individual MobilityOpen Knowledge
The nature of mobility is changing at incredible speed.
Ongoing trends like urbanization, rising fuel costs, environmental
consciousness, an aging society and digitalization
have influenced mobility highly and will continue to do so in
the future. Today’s consumers behave in a different way than
even a few years ago and the car is losing its relevance as a
status symbol.
Presented at Communication World, Munich
- Intelligent networking of different means of transportation play a central role.
- Mobile devices are growing strongly - in number as well as functionality, to provide the opportunity for new business models
- Companies need to develop a mobile strategy and address the new challenges on a broad basis
By Andreas Hein
Collaborative Economy: a p2p renaissance. IAAC Winter Lectures 2016. The impact of sharing economy and the emergence of sharing cities around the world: Seoul, Amsterdam, Milan, Bologna
The Legal Implications of Sharing Economy Models: A Deeper Look into Uber’s I...TAG Alliances
Created and Presented by: Christopher S. Hill of Kirton McConkie
At our Santa Monica breakout session, we were introduced to several legal issues that have been impacted by the rapid growth of sharing economy businesses. Uber’s legal challenges provide a template for many of these sharing economy legal issues, from unfair competition to employment and agency. Courts are ruling that traditional analytical models and precedent do not translate and apply well to sharing economy circumstances. This session will provide a more in-depth report on several legal issues facing Uber and other sharing economy businesses such as Airbnb, and conclude with a roundtable-style discussion of experiences in these markets faced by the attendees.
White Paper: Innovation in TransportationIdeaScale
In this white paper, we discuss the four most pressing areas in transportation that require industry-wide innovation and how the crowd can be a resource to solve concerns in these areas:
- Traveler Experience
- Costs
- Security and Safety
- Technology
Can Government be a good eBayer? Using online auctions to sell surplus property ePractice.eu
Authors: Enrico Ferro Lucy Dadayan
E-commerce in general, and online auctions in particular, represent important examples of how information and communication technologies have been employed by public organizations to gain benefits in both efficiency and effectiveness.
The Sharing Economy: Implications for Property & Casualty InsurersCognizant
Collaborative consumption, also known as the "Peer-to-Peer" or "P2P" economy, poses significant risks for insurers. At the same time, consumers' willingness to share and utilize assets and services like Uber and Airbnb offers significant revenue opportunities for P&C carriers at a time when most have experienced flat-line growth.
The 'Uber-Economy': how marketplaces empowering casual workers disrupt incumb...FrenchWeb.fr
Qu'est-ce qui distingue l'évolution progressive d'un secteur, amené à intégrer le digital à son coeur de métier d'une véritable «ubérisation»? C'est à cette question qu'a souhaité répondre la banque d'affaires Clipperton avec son rapport.
This presentation by Guilherme Mendes Resende from CADE Brazil was made during the discussion on Practical approaches to assessing digital platform markets for competition law enforcement at the 2019 edition of the OECD-IDB Latin American and Caribbean Competition Forum held in San Pedro Sula, Honduras on 24-25 September 2019. Find all related materials at the forum website http://oe.cd/laccf.
The sharing economy: How economic activity is shifting to, and being enhanced...Andrea Silvello
The term sharing economy is widely perceived as a synonym of “collaborative economy” or “on demand economy”, but it actually represents a very wide concept which lacks a common definition.
Rachel Botsman defines the collaborative economy as “a system that activates the untapped value of all kinds of assets through models and marketplaces that enable greater efficiency and access ”. The concept behind the sharing economy is indeed very simple: anything that is not being used can be rented out. This framework includes services such as renting, bartering, loaning, gifting, and swapping of underutilized material or immaterial possessions. These idle resources are useful to create an efficient circular system by reallocating or trading them with people who want or need them. Recycling, upcycling and sharing the lifecycle of products are common features of the sharing economy. “Waste” is the result of a misallocation of resources: today technology often allows us to easily correct that misallocation, by redistributing or trading a great variety of “sleeping” assets and resources (table 1). For instance, Uber and AirBnb platforms allow customers to share cars and homes, while TaskRabbit connects people with free time with people who need someone to perform small tasks.
This Economist Intelligence Unit/Multilateral
Investment Fund report is an introduction to the
2014 Infrascope study that analyzes public-private
partnerships (PPPs) in Latin America and the
Caribbean. Smart mobility PPPs in Latin America
looks at how smart solutions to mobility challenges
in the region lend themselves to a PPP framework.
The report examines the mobility challenges the
region faces, to what extent smart mobility
solutions are used by governments, and the role
the private sector plays in coming up with
innovative mobility solutions. More importantly,
the report analyzes mobility solutions that are
most likely to lend themselves to PPP investment.
MOTOR CARRIER REGULATION AND LAST MILE DELIVERY: HAVE WE COME FULL-CIRCLE WIT...ijmvsc
The focus of logistics has been to deliver products to customers as quickly and consistently as possible
without a severe loss in profit. The growth of multichannel retailing in connection with the recent surge in
on-line ordering, has forced the logistics industry to evaluate current transportation practices and make
innovative adjustments.
The governance of risks in ridesharing a revelatory case from singaporeAraz Taeihagh
Recently we have witnessed the worldwide adoption of many different types of innovative technologies, such as crowdsourcing, ridesharing, open and big data, aiming at delivering public services more efficiently and effectively. Among them, ridesharing has received substantial attention from decision-makers around the world. Because of the multitude of currently understood or potentially unknown risks associated with ridesharing (unemployment, insurance, information privacy, and environmental risk), governments in different countries apply different strategies to address such risks. Some governments prohibit the adoption of ridesharing altogether, while other governments promote it. In this article, we address the question of how risks involved in ridesharing are governed over time. We present an in-depth single case study on Singapore and examine how the Singaporean government has addressed risks in ridesharing over time. The Singaporean government has a strong ambition to become an innovation hub, and many innovative technologies have been adopted and promoted to that end. At the same time, decision-makers in Singapore are reputed for their proactive style of social governance. The example of Singapore can be regarded as a revelatory case study, helping us further to explore governance practices in other countries.
"Collaboration in Cities: From Sharing to ‘Sharing Economy’". World Economic...eraser Juan José Calderón
White Paper del World Economic Forum de Diciembre de 2017 In collaboration with PwC del titulado: "Collaboration in Cities: From Sharing to ‘Sharing Economy’"
Crowdsourcing, Sharing Economies and DevelopmentAraz Taeihagh
What are the similarities and differences between crowdsourcing and sharing economy? What factors influence their use in developing countries? In light of recent developments in the use of IT-mediated technologies, such as crowdsourcing and the sharing economy, this manuscript examines their similarities and differences, and the challenges regarding their effective use in developing countries. We first examine each individually and highlight different forms of each IT-mediated technology. Given that crowdsourcing and sharing economy share aspects such as the use of IT, a reliance on crowds, monetary exchange, and the use of reputation systems, we systematically compare the similarities and differences of different types of crowdsourcing with the sharing economy, thus addressing a gap in the current literature. Using this knowledge, we examine the different challenges faced by developing countries when using crowdsourcing and the sharing economy, and highlight the differences in the applicability of these IT-mediated technologies when faced with specific development issues.
Sharing Economy and the Greek Tourism & Hospitality SectorTOPOSOPHY
This study focuses on the analysis of the sharing of assets, as a growing phenomenon in recent years, which has allowed consumers, through the online platforms of the sharing economy, to gain temporary access to goods and services, and use them according to their needs.
For the Greek tourism sector, there are both strategic and tactical reasons to study the growing intervention of companies associated with the sharing economy in the provision of a variety of tourism and hospitality services.
Disruptive Trends That Will Transform The Automotive IndustryStradablog
Technology-driven trends will revolutionize how industry players respond to changing consumer behavior, develop partnerships, and drive transformational change.
Similar to Regulation of multi-sided transportation platforms in Costa Rica (20)
As the only superpower in the world, the fundamental interest of the United States in the Syrian conflict
is to maintain its superpower status. Guided by this principle, the United States has important interests in Syria:
Toppling or at least the long-term weakening of the Syrian Assad regime; Containing Russian and Iranian
influence in Syria; Fighting terrorism such as ISIS to prevent Syria from becoming a terrorist base; Opposing the
Syrian government’s use of chemical weapons; Supporting Syrian Kurdish forces on the basis of not breaking with
Turkey, etc. Interest is the unity of needs and means to realize them. With the development of the situation in Syria,
the ability of the United States to fulfill its needs is also changing, which leads to the differences of its main
interests in different historical periods of the Syrian conflict, not only in the content of interests, but also in the
priority of interests. In the Syrian conflict, the constant changes in the important interests of the United States
show that the United States is increasingly unable to safeguard its superpower status
The paper focus on entrepreneur skill through business education program to curb restiveness for
sustainable development. Need for entrepreneur skills acquisition were identified, business education program
and functions of entrepreneur were identified and sorted out as the types of entrepreneur in our present society.
Conclusion was drawn which include effort towards creating good initiatives in order to develop our dear
societies as it become the focus in 21st century. Therefore parents and business society should emulate a kind of
economy strategies like China, Germany, and America etc. in order to provide means of surviving strategies
among individuals in the entire nation.
Non-linguistic symbol is a carrier of language,which carries ideas, positions, attitudes and emotions
that people communicate. Based on the case of business communication and the theoretical framework of
semiotics, this paperprobes intothe influence of nonverbal signs on international business banquets from a
cultural perspective, and then puts forward relevant strategies to promote the smooth communication. The study
finds that nonverbal signs play a significant role in the communication and exchange of international banquets.
Nonverbal signs can be made use of to accurately understand the meaning of the other party, and further foster
the realization of effective communication. The purpose of this study is to aimed to provide correspondent
strategies for language barriers encountered in business banquets and business activities, in an attempt to
provide certain implications for such fields as business discourse research, business communication and
cultural exchanges.
Nawāl al-Sa'dāwī has criticised sharply the discourse of masculine God in her works, either
fiction or non-fiction. The phenomena is interesting to be analyzed since there are no many feminists who have
courageoulsy discuss the problem. By paying attention on her works, this paper is aimed to answer the
question: What are the forms of Nawāl al-Sa'dāwī's criticism on the masculinity in the discourse on God? What
is the positionisation of the criticism in the meaning of discourse on divinity and why did Nawāl Al-Sa'dāwī
criticise? The paper gives meaning to the reading on the deconstruction that emphasizes the plurality and
meaning of the relation between the signifie and signifiant in language. Nawāl al-Sa'dāwī offers a new meaning
which is different, humanistic, and visionary, since the masculinity of discourse on God had been structured by
the ruler as a philosophical basis for the theological justification to structurise the patriarchal point of view to
preserve women's subordination. She has made her deconstruction as a strategy for liberation of women and
establishment of their autonomy as their fundamental condition, a gift from God. This autonomy of women had
been actualised in the early history of mankind through the reconstructive reading on history of ancient Egypt
which has been done by her.
The Srebrenica event during the war in Bosnia and Herzegovina has become one of the most
famous. It has also brought the first verdict of the criminal offense of genocide before the international
body after the Second World War. The purpose of this paper is not to attempt relativization of facts or to
answer the question of whether it was truly genocide in a subjective sense, but rather to comment on
judicial practice in those essential segments related to dubious questions and theses. The purpose is, of
course, to understand the issues in order to understand and classify other terrible events in the recent
war or current or future conflicts and trials more easily and correctly.
This paper examine the impact of macroeconomic factors on firm level equity premium. Following
the concept of macro-based risk factor model, we consider macroeconomic variable set of equity premium
determinant. The macroeconomic variables include interest rate, money supply, industrial production, inflation
and foreign direct investment. The macroeconomic variables are not in control of the firm's management. These
are the external factors which affect the company as well as the overall market returns. The Macro-based
Multifactor Model is estimated for the whole sample. It is found that the market premium and the selected five
macroeconomic factors significantly affect the firm level equity premium of non-financial firms. Increase in
market premium, money supply, foreign direct investment and industrial production positively affect the firm
level equity premium while increase in interest rate and inflation negatively affects the firm level equity
premium. These findings are beneficial for the common shareholders, institutional investors and policy makers
to find more specific insight about the relationship between macroeconomic variables and equity premium of
non-financial sectors.
The paper focus on entrepreneur skill through business education program to curb restiveness for
sustainable development. Need for entrepreneur skills acquisition were identified, business education program
and functions of entrepreneur were identified and sorted out as the types of entrepreneur in our present society.
Conclusion was drawn which include effort towards creating good initiatives in order to develop our dear
societies as it become the focus in 21st century. Therefore parents and business society should emulate a kind of
economy strategies like China, Germany, and America etc. in order to provide means of surviving strategies
among individuals in the entire nation.
In this Article the historical survey of puppet art in Pakistan are explained. The survey starts from
1947 to till now. The roots of this art are traced back to the Indus valley civilization, to the Sub Continent, and
eventually to the areas which are now known as Pakistan. Same like India there is no clear history of Puppet
art in Pakistan. This research concludes the details of the history after independence. Underlying research has
strived to explore the significance and the importance of the puppetry as art form and some extent for the sake
of education in Pakistan. This art is subject to decline because of lack of interest of the people in it. This
research explains to know the brief history about puppets stories its reasons and the struggle of the artist to
make this term so prominent. The research also counts the positive aspects of the puppetry that despite all the
odds is still alive and working in our society. Besides this many organizations are also contributing to this field
of art. It proves that the puppetry is in the cultural roots of the people of this region. If a nation is alive then its
art and culture is also alive. Underlying research contributes towards creating awareness for this art and
entertainment form.
Based on John Bailey’s theory of Cultural Adaptation, this research mainly focuses on the differences
between Chinese and the United States’ diet culture, analyzes the background and causes of differences between
Chinese and Western diet cultures, and further expounds the long-standing exchanges and collisions between
Chinese and Western diet culture differences so as to reveal the development status and existing problems of
international business activities under the diet culture differences. The study is aimed to provide certain references
for the elimination of cultural barrier in international business communication and thus promote the smooth
development of international market.
In Indonesia, forest fires become a problem every year during the annual dry season, when fires
are lit to clear and/or prepare land for agriculture. The smoke from the fires creates a haze that affects not only
the area where land is being cleared but also neighboring countries since it travels with the wind. This study
explores media framing related to haze that blanketed parts of Indonesia, Malaysia, and Singapore, through a
qualitative content analysis of the news stories published in 2017 in three leading English newspapers from the
three countries: The Jakarta Post (Indonesia), The Straits Times (Singapore) and The Star (Malaysia). A
theoretical framework from Semetko & Valkernburg (2000) who suggest five media framing (conflict,
responsibility, economic consequences, human interest, and morality) is used in the analysis. The research
questions: What were the main frames used in the three newspapers from the three countries? The results
indicate that responsibility was the most visible frame in the three newspapers. Alleged land clearance by
plantation companies and individuals was the main theme associated with the responsibility frame
and more, the discourse of as a vehicle through which messages are communicated in film
is taking centre stage. Its use necessitates an understanding not only of the vocabulary, but also of the content.
Cameroon filmmakers exploit language to expound and portray how the society is still constantly faced with the
problem of power manifestation and most especially, the marginalisation of women. Limits are set as to where
and what a woman can say in the presence of men. Considered a cultural marginalization, a woman’s words
are not to be heard in public spaces where men are. As such, language in traditional settings, sets limitations
for the woman in almost all aspects of life. Through a semiotic reading of Victor Viyouh’s Ninah’s Dowry and
circumscribed by feminist criticism, this paper attempts to portray the role of the sign in promoting male
domination in Cameroon. The woman is constructed by words and images as the weaker sex and subjected to
the men
The purpose of this study was to describe the use of newspapers as a source for English
Language Acquisition. Its aim was to investigate the extent of which newspapers can affect and enhance the
learning of English language. The Technical English curricular aims to extent learners’ English language
proficiency in order to meet their needs, in everyday life including for knowledge acquisition purposes, and for
workplace use. Effectiveness learning entails learning beyond the classroom. In this regard, newspaper may be
a good resource that can be used to promote and enhance English language learning. This study explored
whether newspaper as an alternative to the textbook able to arouse learners’ interests in learning English.
Newspaper as a tool for language learning.
This study was conducted in Institute Latihan Perindustrian Kuala Lumpur (ILPKL) to obtain students’
views on using the newspapers and to access the effects of its use on their learning. The quantitative modes used
for the data collections. The findings of the study indicated that the use of newspapers did indeed have positive
effect on learners. For the benefit of learners, it is therefore hoped that there, would be greater usage of
newspaper as source for English language acquisition in the classroom.
The goal of this work is to address, from the conceptual framework of theories on “deliberative
democracy”, the role played by the Judicial Power, being an integral part of the State, as the institutionalized
field of deliberation for making collective decisions.
In order to do this I will start by analyzing, from a legal-institutional perspective, the way in which the
National Constitution of Argentina distributes the functions of the State and how it divides the competences to
decide on the Public Thing. Furthermore, I will analyze which are the degrees of deliberation and of citizen
participation (direct or indirect) in each portion of the constituted power. Then, I will develop my intuition about
the way Justice operates as an institutional form of citizen participation within a Social State of Law, comparing
such proposal with the opinion of authors that highlight the countermajoritarian nature of the Judicial Power. I
will present some representative cases of the intervention of the Judicial Power in the making of
institutionalized public decisions, generated by the action of minorities with little or no political representation
and in which, after a deliberative practice, government measures that gave a positive response to the proposals
of the actors were ordered.
As an anticipation of my opinion, I will say that in our current Argentinian constitutional system there
is a paradox in which the Judicial Power (being, due to its origin, the least democratic of the powers) allows for
the development of procedural discursive practices, enabling the Public Decision Making to be the product of
the deliberation between parties (citizens and governments) on a level of equality and freedom of speech in
which arguments are exchanged in a rational way and in a previously regulated framework within a formalized
procedure.
This qualitative case study focused on developing a better understanding of a major utility
company’s knowledge management/customer service information and communications as well as practices
that were implemented during a catastrophic hurricane. The data collection and analysis procedure
revealed a gap when a comparison of the actual knowledge management practices that were used and not
used in the utility company’s customer response during the hurricane. Organizational practices of highperforming knowledge-management companies were used to analyze and compare their practices to utility
company. Findings from the analysis resulted in the establishment of a Balanced Scorecard framework for
recommended best practices and action steps with the potential to set new strategies and trajectories for
allorganizations.
The current work presents a literature review about life skills, which have been studied for a
long time; however, it was until 1993 when the World Health Organization (WHO) placed them among the 10
basic abilities which allow the individual to develop correctly in various contexts. From that year, a series of
actions were taken to standardize a common language around them and have derived in several promotion and
research around this topic. In many countries of Latin America and Spain, the teaching of life skills have been
incorporated into the basic education and shown good results since its implementation. Regarding higher
education, this proposal can prove promising in view of acknowledging that universities at present do not only
form specialists in a given discipline, but also promote integral development. It isconcluded that teaching life
skills in higher education can aid in the students’ integral development.
The services of local government legislators and customary court judges are often associated with
self-abnegation. However, most of these officials use their positions as money making ventures and material and
financial considerations have been the principal catalyst in the quest for such offices. It is because of these
recurrent occurrences in developing countries in general and Cameroon in particular that the study revisits the
situation in West Cameroon. It contends that most of these officials used their offices in amassing wealth as the
quest for increases in allowances and privileges became the common characteristic. Where these perceived
gains were not forthcoming, legislators and judges resorted to corrupt practices and their decisions/judgements
were often based on material and financial considerations. When some of them found it difficult to raise money
from services offered to their constituents, they simply abandoned their duties for personal businesses or juicy
opportunities elsewhere. The study concludes that legislation which warrants only selfless and dedicated
individuals to seek for these positions is needed. Again, it holds that local communities should be empowered to
sanction recalcitrant officials with little or no interference from central authorities. In this way, the engaging of
unpatriotic citizens in the management local government affairs will be checked.
The need to deepen the study of nationality formation and consolidation processes in Cuba, has
found in the Masonic fraternity an unobjectionable source of information, closely linked to the deepest roots of
nationalist thought and feeling. Masonic researches have become vital in unraveling the historical fabric that
gave way to the beginning of struggles for the Island independence.
The present research, as part of a doctoral thesis project -in the initial phase-, aims to elucidate the importance
this subject refers to researchers from Cuba and the world. It also pretends to focus on Freemasonry in
Guantánamo province, as an effort to explain the main factors that contribute to the social reproduction of
Masonic fraternity from a sociological perspective which is an insufficiently studied subject into the Cuban
context. The relationships that underlie the fraternal group's behavior and cohesion will be revealed by using
the prosopographic method, the theory of social networks and the analysis of socialization forms.
The article traces the genealogy of the concept of Nature and landscape from the romanticism to
the second industrial revolution. This archeology of ideas aims to dissect Nature as a subject of discourse in
order to propose it as an “empty container” filled with fantasy and which has been instrumentalized by
(sometimes) conservative power axes. The ongoing ecological crisis demands a set of new theoretical
approaches towards what is that thing “out there” that we call Nature since the romantic paradigm only gives
away a passive and contemplative image that serves to economic exploitation and aesthetical consumerism.
Through the lens of eco-criticism, the aim is to dismantle and deconstruct the fantasy of Nature by proposing
different entry points from interdisciplinarity and critical studies.
Using a theoretical concept by combining linguistic relativity and linguistic determinism – the
structure of our language; a set of specific selected words influence man’s perception of the world and language
use determines thought and action, data was collected and analysed qualitatively. The aim of the paper is to
illustrate the pertinence of culture in language use and actions with emphasis to explore the contextual symbolic
meanings of specific words in Africa nation states’ quest for peace. Specifically, in this paper we examine
carefully selected and uttered lexis and their significant meanings in Cameroon, South Africa and Uganda. The
results of the study confirmed that words have unique significance in relation to the culture, history and identity
of a particular African people. Words used in the Cameroon context, ‘all is well’, are mostly words of hope and
assurance in a war-free nation. The interpretation of some words, ‘Rhodes must fall’, generate disputes and
lead to violent actions in the search for peaceful and prosperous co-existence in an apartheid ridden country
like South Africa. Certain words of greetings, ‘you still exist’, though a total recall of pain and torture in a
period of turbulence and massacre in Uganda, portray gratitude and delightedness among citizens.
A special school is a school catering for students who have special educational needs due to serve
learning difficulties, physical disabilities or behavioural problems. Special schools may be specifically
designed, staffed and resourced to provide appropriate special education for children with additional needs. A
Special school is a school for children who have some kind of serious physical or mental problem.The present
study examines the job stress of teachers working in special schools. The sample of the study comprised of 156
special school teachers working in aided and private special schools in Tirunelveli district, Tamilnadu. Simple
random method was used to select the sample from the population.Survey method was used to collect data. The
findings revealed that there is significant difference in job stress of teachers working in special schools with
regard to locality of special school teachers, qualification and work experience of special school teachers.
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Regulation of multi-sided transportation platforms in Costa Rica
1. International Journal of Arts and Social Science www.ijassjournal.com
ISSN: 2581-7922,
Volume 2 Issue 3, May-June 2019.
Oscar Ugalde Hernandez Page 24
Regulation of multi-sided transportation platforms in Costa
Rica
Oscar Ugalde Hernandez
Administrator/LIU Global Financial Officer
Costa Rica Center/LIU Global
Abstract: The contending forces generated by friction between the collaborative platform firms in the paid
transportation of people’s market, and the regulation present in anti-trust policies in Costa Rica will be
discussed in depth as a means of determining the economic impacts that new regulatory bills may cause.The
recent entryof developing countries into the collaborative economy has caused social and economic tensions
due to the lack of an updated and rejuvenated legal framework which could reconcile the economic and legal
differences.The expected results of a new anti-trust policy to regulate collaborative transportation platform
firms in Costa Rica are a higher regulated price, a lower quantity supplied of hailing rides, and a loss of
efficiency in the sector consequence of the new technical requirements. The case of Uber Company’s entry in
Costa Rica is used to depict these economic effects.
Keywords: regulation, innovation, firms, public policy, developing countries
JEL classification: Technological change (O33), Government Policy (038)
I. Introduction
The idea of ‗sharing‘ has been around since humankind made transactions of goods and services
through barter, but recent advances in technology have propelled the appearance of collaborative and sharing
platforms by which the traditional business models used in the transportation, food, and other services, need to
be reinvented. It has also brought about the emergence of a new digital evolution that requires the more efficient
utilization of ‗sharable goods‘ such as automobiles, houses, or even time through cleaning or running errands.
Access to certain assets has become more important than owning those assets since individuals obtain the
benefits of these assets without having bought them. For the suppliers of those assets, the "sharing economy" is
revolutionizing the work force and the idea of becoming an entrepreneur is becoming reachable for many more
sectors of society. In what could be a futuristic scenario with more and more events taking the world closer to
what he describes, Arun Sundararajan (2016) states that "the assortment of behaviors (and organizations) that
many of us optimistically call the sharing economy‖ are early instances of a future in which peer-to-peer
exchange becomes increasingly prevalent, and the crowd replaces the corporation at the center of capitalism
(Location No. 165).
The "sharing economy," based on collaborative consumption, has proliferated exponentially in recent
years thanks to the emergence of digital platforms and mobile applications. Although it is a new concept in the
global economy, it has spread across the board in the form of "peer-to-peer ride sharing, accommodation sharing
and renting household items" (Ernst & Young LLP, 2015, p. 6). In a Price Waterhouse Cooper report called The
Sharing Economy:the intelligence series, it is projected that "five key sharing sectors—travel, car sharing,
finance, staffing, and music and video streaming—have the potential to increase global revenues from roughly
$15 billion today to around $335 billion by 2025" (2015, p. 14).
Prior to August 2015, the concept of the sharing economy was relatively new in Costa Rica as it had
been in the United States. Uber Technologies Inc. was launched in New York in March 2009. Its first name was
2. International Journal of Arts and Social Science www.ijassjournal.com
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Oscar Ugalde Hernandez Page 25
UserCab which was then changed to Uber as it is known today. Its headquarters are located in San Francisco,
California, and it is operating today in more than 80 countries (Mathawan, 2018). On August 21st
, 2015, Uber
Technologies Inc. decided to start offering its multi-sided platform in the Costa Rica with the local name Uber
Company.Luis Guillermo Solis, president of Costa Rica from 2014-2018, stated in the local newspaper,El
Financiero "Uber is illegal since paid transportation of people is a regulated service" (Avendaño, 2018). As a
new economic phenomenon, the sharing economy business model needs to re-examine or even re-invent the
regulations around them. While regulations are in place for traditional taxi operators in Costa Rica, neither its
government nor the regulatory bodies have specific rules covering on-demand transportation platforms. This
sets the stage for contending market forces of demand and supply, and regulatory interventions to collide.To
reconcile these issues, two new bills are under analysis at Costa Rica‘s Congress: Bill 20113 of 2016 and Bill
21228 of 2019. The research query which drives this work asks the following:
Could the new regulatory policy (in Bills 20113 and 21228) in Costa Rica, deter the projected
economic effects that the multi-sided platforms are expected to experience in the paid transportation
services?
To answer this research question, a couple of objectives have been determined:
To analyze the economics of collaborative or sharing platforms in the paid transportation of people
market in Costa Rica.
To study the possible economic effects of applying a new anti-trust regulatory policy in the paid
transportation of people sector in Costa Rica.
In order to achieve these objectives, the following methods are applied:
1. A descriptive literature review is applied in order to determine whether a series of theories and
concepts in a specific research topic unveil ―any interpretable pattern or trend with respect to pre-existing
propositions, theories, methodologies or findings‖ (Paré et al., 2015, p. 186). In this respect, the economic
theory related to multi-sided markets as well as the economic theory of regulation are examined methodically to
determine causal linkages with the case study of Uber Company in Costa Rica and the acting of Costa Rica‘s
government in regulatory anti-trust policies.
2. A comparative case study analysis is developed by which similarities, differences and patterns,
according toDelwynGoodrick (2014), are analyzed and synthesized trying to determine "how and why particular
programs or policies work or fail to work" (p. 2). This method is "particularly useful for understanding how the
context influences the success of an intervention and how better to tailor the intervention to the specific context"
(Goodrick, 2014, p. 2). The analysis is of the contending forces between the multi-sided market that Uber
Company and other minor market participants in paid transportation in Costa Rica have generated, and the
reactions that the local anti-trust policy administrators and regulatory commission may have.
This essay is organized into the following parts: 1. Introduction, 2. Theoretical framework,3. An
analytical approach of Uber Company‘s market impact and legality in Costa Rica, 4. Contending forces between
the economics of multi-sided platforms and the new proposed regulation towards collaborative transportation
firms in Costa Rica, and 5. final remarks.
II. Theoretical framework
2.1. Economic rationale of Multi-sided platforms
By the year 2000, the concept of a "multi-sided" (Rochet and Tirole, 2003 p. 990) market was
discovered thanks to the seminal paper called "Platform Competition in Two-Sided Markets" by Jean-Charles
Rochet from Université de Toulouse and Jean Tirole from InstitutD’EconomieIndustrielle. In this case, the term
"multi-sided" means a business is built upon "direct interactions between different types of customers who use
nontraditional, counterintuitive strategies to make money and survive" (Evans and Schmalensee, 2016, p. 15).
Rochet and Tirole‘s paper inspiredmany other writers to follow with important analytical contributions
tothisimportant body of knowledge, which is revolutionizing this new field of economic thought.
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Despite the robustness of different microeconomic models which have been derived over the last
century related to the economic behavior of traditional firms, its applicability in this new field of multi-sided
platform economics is not possible. There are remarkable differences in what the traditional models predict, and
how multi-sided platform economic models are characterized. The following features are distinguishing
characteristics of multi-sided markets:
A. Interdependence: Multi-sided economics state that there is interdependence between the demand by
the customers on the different sides of the platform; namely the interdependence between Uber drivers and its
customers. Uber drivers have been captivated by the flexible work hours and the benefits that the multi-sided
platform intermediary applies, and the consumers are enchanted by the sophisticated Uber application and lower
prices in comparison to traditional taxi services. The multi-sided platform would not be able to survive if one of
the sides (demands) is not present.
B. Critical mass: Maintaining such a balance requires that the platform intermediaries apply an ideal
pricing structure. Most multi-sided markets in Costa Rica such as Uberhas favored the use of price incentives on
one of the sides of the platform in order to balance the demand on both sides. At the initial stages of the
business, it is more necessary to give monetary incentives to customers rather than to setting a firm price. The
dynamism generated by multi-sided platforms allows both sides of the market to have their own demand. If
there is weakness in one of the sides of the market, it can affect the other side. As described by Evans (2011),
"multi-sided platforms are required" toobtain a critical mass of users on one side of the market by giving them
the service for free or even paying them to take it" (p. 106). The entry stage of a firm into a two-sided market is
a key moment in which the survival of the firm is subject to effective forms of pricing structure to get both sides
on board.
C. Chicken-and-egg dilemma-investing solution: To solve the chicken-and-egg dilemma, the multi-
sided platform can attempt to create demand on one side so that it is also pushed on the other side. Neither
drivers nor customers will be willing to join Uber if there is no previous demand. A mechanism to overcome
such an initial barrier is "to invest in one side of the market to lower the cost to consumers on that side of
participating in the market" (Evans, 2011, p. 107). Uber invested in two very distinguishing features which have
benefitted drivers and customers all over the world: a. its smartphone app by which riders can order a taxi ride
and pay effortlessly and can even detect the exact time and distance of the driver to the pick-up point; b. an
easy-to-use rating system for drivers by which riders evaluate their experience through their app on their
smartphones. Drivers with low scores are set apart from the platform.
One side of the market that applies low prices or other types of incentives allows the platform to solve
the chicken-and-egg problem (Caillaud and Jullien, 2003) by facilitating the participation of the group which
benefited. Eventually, this would permit the other side that had not benefitted from the low price to obtain a
similar advantage as the benefitting one. On August 30, 2018, the local newspaper Tico Times stated that "Uber
has become popular in Costa Rica for its lower prices and the convenience of ordering rides through mobile
devices, which is safer for users" ("Uber drivers protest," 2018). Uber also offers rides for as cheap as 1,200
colones (approximately $2USDat the current exchange rate) if a customer introduces the application to a new
customer.
D. Network effects what happens when "consumers value a product more,[then] the more other
consumers use the product" (Evans, 2011, p.100). These effects can be classified into two types:
D.1. Direct network effects: As described by Tirole and Rochet (2003), the interdependence
feature of multi-sided platforms generates direct network effects. They are the result of having effective
communication between users on one side and users on the other side of the platform. When users on
one side of the platform have strong demand for the service, this causes there to be a strong demand on
the other side as well.
D.2. Indirect network effects: These happen if the technological platform administrator
facilitates users to communicate effectively. Once the users on one side of the platform have stronger
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demand for the product or service, it can be considered that users on the other side have created a
demand by themselves, and "the demand for complementary products is higher and the supply of those
complementary products will benefit" (Evans, 2011, p. 100). Getting both sides on board of the
platform generates synergies which allow one of the sides to demonstrates its demand, and that it
benefits the more users on the other side. Paid transportation services that use technological platforms
fall under this category because they are characterized by the interdependence between both sides.
Both sides of the technological platform develop an interrelationship which in turn generate a cross-side
network effect, also known as an indirect network effect. The platform intermediaries may sacrifice sales on one
side to reach the much-needed critical mass, so that the other side becomes more appealing. As a result of this
strategy, the indirect network effects can help market participants to achieve a durable competitive advantage by
anchoring their market sizes on one side and to reach a dominant position on the other side, building barriers of
entry for the new arrivals (Song et al, 2015).
Differences between one-sided and multi-sided markets are remarkable. The basic rationale of a one-
sided market is to run a profitable business based on the purchase of inputs from suppliers and transforming
them into a value proposition which is generally a finished good or service. On the other hand, multi-sided
platforms depend upon the attraction of at least two types of customers by facilitating their interactions on
attractive conditions. The multi-sided platform‘s most important inputs are their customers (on one side drivers
and on the other side their riders).
Due to the breakthroughs in the last two decades in internet and in mobile devices, the multi-sided
platforms have flourished not only in the paid transport industry, but in many industries.
2.2. Anti-trust policy rationale and regulation
Why would a government, like Costa Rica‘s, be concerned with a firm like Uber growing rapidly in the
paid transportation sector? Is the Uber Company in Costa Rica gaining monopoly powers to such a level that an
anti-trust policy is justified? The application of anti-trust policies to "prohibit the acquisition or exercise of
monopoly power by business firms" (Lipsey, Steiner, Purvis, 1987, p. 290) is one of the most common
definitions to explain the influence of market power in economic decision-making.
The main objective of anti-trust policies is to encourage competition against those who attempt to
obtain monopoly power, or to control trade in other non-economic motifs such as political influence. Monopoly
profits could persist if there are barriers that restrain new competition from entering. In the case of Uber‘s entry
in Costa Rica since August 2015, it has been questioned by the local taxi drivers‘ guilds for changing markets
structures by making the paid transportation sector more monopolistic as a result of Uber‘s ‗natural‘ efficiency
and innovation reflected in its multi-sided platform. Moreover, due to its rapid capacity to achieve a critical
mass of driversand users, it has been capable of achieving economies of scale. Uber Company in Costa Rica has
also been questioned for its predatory behavior because of its rapid growth and substantial market power against
rival sellers, which has forced many of them into cooperative behavior or bankruptcy. Another complaint by
pressure groups is the utilization of price discrimination to certain market segments. This has been the result of
finding a balance between the two sides of the market and reaching an important critical mass of users and
drivers in Costa Rica. Such success has been achieved in only three and a half years of operation in Costa Rica
and has raised some red flags in pressure and rent-seeking groups to determine the Uber Company‘s legal status
in Costa Rica. Is the Uber Company a public utility, and therefore obliged to fulfill all legal requirements as a
traditional local taxi company?
Paid transportation in Costa Rica is a public utility, thus it is maintained by a regulatory commission.
The local taxi providers are managed by the Public Transport Council (PTC), which is the local public
regulatory commission for transportation services for this country. In return for giving a company the right to be
the sole producer, the PTC reserves the right to regulate its behavior of entry. Any other form of paid
transportation that tries to compete with local taxis would be considered illegal. The licenses facilitated to local
taxi providers provides them with a "natural" barrier of entry. When the Uber Company arrived in Costa Rica, it
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started operating as a private facilitator of people‘s transport services with no regulation from any regulatory
commission or any government agency. Interestingly, the local taxi drivers have generally organized themselves
in the form of territory-affiliated (T.A.) cooperatives. Other taxis function independently as regulated local taxis
attached to a certain territory. Thus, they function as a regulated T.A. natural monopoly.
What restrains regulated natural monopolies of T.A. taxi drivers‘ cooperatives from acting as a profit-
maximizing monopoly which restricts output, raises price, and fails to provide the large volume of output at a
low price that the technology makes possible? The price set by the regulatory commission has often aimed at
setting prices high enough to permit firms to cover all their costs, yet low enough to achieve the large sales
required to reap the scale economies that characterize natural monopoly situations. If a regulatory commission
knew the demand curve and the cost curve exactly, it could simply pick the price indicated by the intersection of
the demand curve and the average total cost curve, as depicted in Figure N. 1, which is important because it is a
balanced option between the efficient price and the monopoly price. This is called average cost pricing. It will
not, in general, lead to allocative efficiency because price is not equal to marginal cost, as depicted in the
following graph. But average cost pricing would give much lower prices and a larger output than a
monopolist‘s.
Figure N. 1: Average cost pricing in natural monopolies
Source: Adopted from Rice University (n.d.).
The reality shows that regulatory commissions generally do not have accurate demand and cost
information, so they have tended to judge prices according to the level of profit they produce. Generally having
set prices, regulatory agencies permit price increases when profits fall below "fair" levels and require price
reductions if profits exceed such levels. Thus, what starts as price regulation becomes instead profit regulation.
Having done a revision of how collaborative transport platforms behave and how the government could react to
them via anti-trust policy, an analysis is elucidated regarding Uber Company‘s market impact and legality in
Costa Rica.
III. An analytical approach of Uber Company’s market impact and legality in Costa Rica
3.1. Market entry, economic impact and contending interests
In 2015, the Uber Company started operations in Costa Rica (Soto, and Avendaño, 2018) without
having requested any authorization to operate to any government agency or regulatory commission. The Uber
Company entered boldly into the Costa Rican transport scene. The Uber Company‘s manager in Costa Rica at
that time, Humberto Pacheco, argued that it was functioning legally in Costa Rica based on the legal figure of
‗self-managed‘ or ‗self-sufficient‘ transportation communities (Rodriguez, 2016). Additionally, Uber
Company‘s spokesperson in Costa Rica, Rocio Paniagua, explained that these ‗self-managed‘ or ‗self-sufficient‘
transportation communities are a ―community of members (users and drivers) created to self-manage or self-
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supply their mobility-specific needs" (Rodriguez, 2016). The Public Attorney‘s office of Costa Rica had issued
several legal opinions that establishes the possibility that the traditional public utilities, for instance, drinkable
water or electric energy, could be generated or supplied through the communities of self-management or self-
sufficient communities. (Rodriguez, 2016).
Ever since, Uber Company in Costa Rica has confronted several setbacks. The initial impression by the
Ministry of Transport and Public Works is one of illegality in relation to Uber Company‘s operations in Costa
Rica, the local Transit Police began issuing fines of approximately $200 and confiscating Uber drivers‘ cars. On
August 21st
, 2015, the first two Uber cars were confiscated in a special operation undertaken by the Transport
police to identify illegal drivers (Rodriguez, 2016). On February 19th
, 2016, the Constitutional courts adopted a
claim presented by two Congress members, Otto Guevara and Natalia Diaz, by which they requested to call the
actions of the Transport Police ‗unconstitutional‘. The final ruling favored the request made by the two
Congress persons and all negative actions against Uber drivers in Costa Rica had to stop. However, the issue of
its legality in Costa Rica was not even mentioned by the Constitutional courts.
Another relevant setback originated because of a pricing strategy that Uber Co. adopted on April 26th
,
2016. It applied a 20% reduction to its rates in Costa Rica. Such a decision was very welcome among Uber
customers, but had a very negative opinion from the rent-seeking traditional T.A. taxi drivers and their
organizations such as taxi cooperatives. (Rodriguez, 2016) The ‗red taxis‘ as they are traditionally called in
Costa Rica, organized themselves into strikes, where they were slow driving on highways, and even created road
blockades. The objective of these actions was to put pressure on the government to make Uber Company and its
efficient platform illegal.
Despite these setbacks, Uber Company in Costa Rica has experienced a very impressive market entry
and consolidation in these first three and half years of operations. In the following chart, the affiliations of
drivers during its first three and a half years of operations can be depicted in Figure N. 2:
Figure N. 2: Uber drivers in Costa Rica (period August 2015-July 2018)
Source: El Financiero (Avendaño, 2019), (Chacón, 2017)
As depicted in Figure N. 2, Uber drivers have grown from 7000 drivers during the first year to 21000
drivers at the end of the third year of operations.In a similar trend, Uber Company‘s platform customers have
had a very robust growth in the last three and half years of operations in Costa Rica. Figure N. 3 depicts this
trend.
7000
18000
21000
0
5000
10000
15000
20000
25000
July 2016 September 2017 July 2018
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Figure 3: Uber customers in Costa Rica (period August 2015-July 2018)
Source: El Financiero (Avendaño, 2019), (Chacón, 2017)
Uber Company customers‘ affiliations to its platform has moved from 225,000 users in July 2016 to 800,000 in
July 2018. This represent an increase of 255% in two years.
On the customer side, the Uber Company has applied aggressive pricing strategies which caused an
impressive growth in only three and a half years of operations in Costa Rica. It entered Costa Rica with a rate
"51% lower than the taxi fare" (Rodriguez, 2016). The official rate per kilometre of taxi rides in August 2018
was at 630 colones, which was approximately $1.10 USD, but Uber drivers were charging 300 colones, which
was approximately $0.54 cents of a dollar.
On the drivers‘ side, a survey was given in December 2016 by El Financiero newspaper to Uber
drivers. At that time, there were 13,000 Uber drivers, and there were 6138 responses via email. It was
discovered that 58.5% of the respondents said Uber Company represented their main source of income.
Moreover, 50% of the respondents were on average between 21 and 35 years of age. People above the age of 55
years represented 5.7% of the total Uber drivers that responded to the survey (Chacón, 2017).
Through incentives, innovation, and decent economic conditions, Uber Company has positioned itself
as an attractive option for both users and drivers. The result is a successful market penetration, which has
reached to 16% of the total population of the country and has been able to surpass 22,000 Uber drivers. The
amount of traditional T.A. taxis in the country was at 16,500 units by 2018.
Despite such positive results in its operations, the legal scenario is still not clear for Uber Company in
Costa Rica. Would it be able to maintain its operations in Costa Rica legally, under the shadow of an anti-trust
policy, and still make a profit? The next sections sketches the several legal scenarios that the Uber Company in
Costa Rica is confronting and will confront in the near future.
3.2. Legal status of Uber Company in Costa Rica and relevant anti-trust policy: Is it justifiable to
regulate it?
Neither the judicial nor the legislative authorities have taken a position regarding the Uber Company‘s
legality in this country.As a result of the Uber Company´s controversy in entering Costa Rica without a well-
defined legal status, several relevant individuals and institutions have issued statements trying to interpret Uber
Company‘s and other similar firms‘ legal status.
The traditional Taxi Drivers‘ Guild has expressed its disagreement in allowing the collaborative
platform firms such as Uber Company, to operate in the country. According to Law N. ° 8955, any paid
225000
500000
800000
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
July 2016 September 2017 July 2018
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transportation service of people is required to pay some levies and to fulfill certain technical requirements.
However, the Uber Company has been using the legal figure of ‗self-managed‘ or ‗self-sufficient‘ transportation
communities. This figure does not exert any kind of financial or technical requirement on Uber drivers. The
traditional Taxi Drivers‘ Guild interposed an open process in the Administrative Courts (Case number 16-
004576-1027-CA), which is expected to determine the Uber Company‘s legal status.
The former president, Luis Guillermo Solis, declared the illegality of Uber Company indicating that "In
regard to Uber, it is a public service. Laws in Costa Rica include paid transportation services of people as a
public service. The local law regulates public services and establishes very concrete conditions for them
regarding controls, quality and insurances. So therefore, an activity that is not regulated is an illegal activity.
There is no other option" (Presidencia de la Republica, 2015).
In addition to this, the Attorney General´s Office of the Republic statedtheir legal opinion about Uber
Company‘s legality in Costa Rica with the following:
A. From the moment Law n. ° 8955, named Public Paid Transport with Vehicles of People
Regulatory Law, was in place on June 16th,
2011, paid transportation of people in Costa Rica
(independent of the type of motor vehicle that is used or the people for which it is destined to) is a
public service. According to Law n. ° 8955, traditional T.A. taxi drivers must pay taxes over their
revenue, must take their cars to technical revision twice a year, and pay an obligatory fee to the PTC to
keep their license plates renewed, and other legal requirements established.
B. Once Law n. ° 8955 was implemented, no person –physical or legal– was able to offer the
service of paid transportation of people if the person had not been given the respective authorization –
concession or permit, by the PTC.
C. Article 145, Subsection Y, of Law n. ° 8955, states that all owners and drivers of motor
vehicles who are dedicated to offer paid transport services of people must be sanctioned and fined, if
they do not have the proper authorization from the PTC.
Thus, the Attorney General‘s Office concludes that any firm offering paid transportation to people should be
categorized as a public service. Even though this legal opinion does not determine the legal status of Uber Co. in
Costa Rica, it can be deduced that Uber Co. must comply with the existing dispositions of this Law. By not
doing so, it can be interpreted as acting in an illegal manner. Yet, the presence of Uber Company in Costa Rica
is bolstering the Costa Rican economy since it provides constant employment in an area that needs to be tackled
- transport in Costa Rica.
Even though these legal opinions shed light on how Uber Company‘s operations in Costa Rica could
fall under the status of illegality, the enforcement of Law n. ° 8955 has been weak, and the local transportation
authorities have not taken any definite decision in relation to charging the same fines to Uber drivers that the
taxis do. Only sporadic actions were taken by the Transit Police by which some Uber drivers and their cars were
fined, and some cars were even confiscated. However, Uber Company continued functioning through its multi-
sided platform and its app, with a degree of fear and worry that the police may stop them.
To have a definite solution to the collaborative transportation dilemma in Costa Rica, congressman
Franklin Corella proposed, in September 2018, a new bill to Congress calledtheCollaborative Mobility Law in
Costa Rica, which was assigned file number 20113. As its name indicates, this bill is expected to regulate
collaborative transportation. In the bill‘s document, there is a very important clarification in article 4 as to the
definition of collaborative transportation, namely ―the modality of land transport that is not subjected to
established prices, itineraries, routes, schedules, nor passing through frequencies, facilitated by a physical
person who offers at their convenience through technological platforms a vehicle, their asset, in order to satisfy
the needs of mobilization of other people through a previous mutual agreement" (Corella, 2018, p. 4). Based on
this definition, Uber Company can be classified as a firm that can be regulated under this new bill and,
therefore, be subject to its dispositions if it gets approved.
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In article N. 6 of Bill N. 20113 (Corella, 2018, p. 11), the Collaborative Mobility office would be
created if the bill is enacted. It is expected to administer and supervise the registration of collaborative
transportation firms and their drivers. It is also responsible to create and manage public policy regarding this
subject, and to make sure that the collaborative firms and drivers fulfill all the regulatory requirements that the
Ministry of Economy, Industry and Trade determines.
In article 40 of Bill N. 20113 (Corella, 2018, p. 20), other set of requirements are established so that
multi-sided transport firms can operate in the country:
To create and maintain an updated internal registry of collaborative drivers, their vehicles, as well as
their platform company operators before the Transport Company Network. This is a network regulated
by the PTC as part of the Minister of Public Works and Transportation.
To give every customer of a ride a receipt that contains, as minimum, the following information from
each collaborative mobility service provider: price, traveled route, license plate, and type of
collaborative vehicle, full name, and photo of the collaborative driver.
To charge a 3% tax to collaborative drivers for any sale of transportation of people service. This
amount will be used to finance the creation of the National Mobility Fund which would be part of the
PTC, and its goal is to modernize public transportation in Costa Rica. (Fernandez, 2019).
As a response to this Bill proposal, which was considered favorable towards the multi-sided platform operator
firms in Costa Rica, there is an evident lack of support from members of Congress and a strong opposition from
the traditional taxi guilds. There are threats from such groups to promote a nation-wide strike which includes
blocking roads. A new government assumed office in May 2018, and the country‘s new president Carlos
Alvarado along with the new Minister of Public Works Rodolfo Mendez, have pushed forward a new bill
proposal by which a new equilibrium is expected to be reached in the paid transportation sector in Costa Rica
(Avendaño, 2019).
On January 21, 2019, the recently elected government presented to Congress a new bill with file
number 21228, which is called the Reform to the People´s Paid Transportation System and Transport Platforms
Companies´ regulation. Its main objective is, according to the new Transportation Minister Rodolfo Mendez, to
"generate the optimal conditions so that the taxi companies and companies like Uber, can coexist" (Avendaño,
2019).
The most important characteristics of Bill N. 21228 are stated as follows:
To collect a fine of 8300 million colones (at the current exchange rate it is $13,737,000USD) from
Uber Company prior to getting registered as a private transportation operator in the country. This
amount is equivalent to 18,600 base salaries based on the Judicial Power´s scale. This fine would be
applied to any collaborative transportation company which operated in the country prior to the approval
of this Bill.
To charge all firms offering transportation service in the collaborative vehicles‘ market, such as Uber
Company, a 13% corporate tax.
To collect an 8.5% remittances tax from collaborative transportation firms in any money transfers sent
overseas.
To create a new legal figure called Transport Platforms Companies (TPC), which would allow PTC to
classify and register any collaborative transportation firm operating apps to match drivers and
customers which require collaboration.
To declare all TPCs a public utility company, however they will not be subject to the direct regulation
of public prices such as taxi, water and electricity firms.
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To collect from all TPCs which begin to operate after the law is approved, a fee of 100 base salaries in
order to be registered legally in the PTC. In order to renew their registration yearly, they must pay 50
base salaries.
To collect a 13% value-added tax to any collaborative driver providing rides to customers.
To collect a yearly levy of $200 to any driver registered in any collaborative transportation firm that
uses a multi-sided platform. This fee is to be used in the administration and supervision of the future
Registry of Technological Platforms which is to be created as part of the PTC. An additional levy of
$35 would be charged to any driver in the collaborative industry in order to get a "driver´s code" which
would be used to finance the current and operational costs of the PTC.
To charge a 3% of the amount charged to any collaborative transportation customer who requested a
transportation service through the multi-sided platform of any collaborative operator company. This
amount will be used to finance the creation of the Mobility National Fund which would be part of the
PTC. The Fund‘s goal is to modernize public transportation in Costa Rica (Avendaño, 2019).
A comparison between Bill N. 20133 and Bill N. 21228 leaves a sense of bias towards Bill n. 21288, when
considering the government‘s intentions to regulate the collaborative transportation firms and their drivers in
Costa Rica. The package of new regulations and conditions for the ascending collaborative transportation sector
in Costa Rica seems to act as an anchor that prevents it to get out of sight. A few questions arise in terms of the
possible consequences that the enactment of Bill N. 21288 may cause: Could the new anti-trust policy
embedded in Bill N. 21288 deter the collaborative transportation firms and their drivers from operating in Costa
Rica? Would the new set of regulations directed towards the collaborative transportation firms, such as Uber
Company and their drivers, in Costa Rica hinder its recent growth in numbers of drivers and customers? The
next section discusses the possible economic consequences of enacting Bill N. 21288 and its set of anti-trust
regulations and requirements.
IV. Contending forces between the economics of multi-sided platforms and the new
proposed regulation towards collaborative transportation firms in Costa Rica.
4.1. Possible economic consequences of Bill N. 21288 on collaborative transportation firms
In this case, the new bill could impose a penalty of approximately $14 million U.S. dollars with the
intention to decrease an undesired market behavior. According to the opinions abovementioned related to the
legal status of Uber Company in Costa Rica since its entry, they have been operating without the appropriate
permits or concessions generally issued by the PTC. Such a compensatory penalty may seem like a very large
sum of money for Uber Company to pay if the bill is enacted. However, in a recent valuation made by United
States banks to Uber Technologies Inc. in October 2018, it is estimated that it will be worth $120 billion dollars
once it becomes a public company during 2019 (Reuters, October 2018). Would the imposed $14 million U.S.
dollars penalty be enough to discourage Uber Company from growing as it did in the last three and half years?
Would be it an effective regulation to prevent other collaborative transportation firms to enter the Costa Rican
paid transportation of people‘s market?
This penalty may impact the short-run operations and finances of Uber Company in Costa Rica.
Because multi-sided platforms in their entry stages in a new market rely heavily on achieving a critical mass, it
is necessary to apply certain benefits such as price strategies on one of the sides of the platforms and the demand
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on the other side of the platform will be influenced positively. With the severity of this penalty, it becomes very
difficult for Uber Company to apply such price strategies. It is not uncommon for these collaborative
transportation firms to operate with financial and economic losses in the short run. However, its capacity to
balance these short-run losses with increases in critical mass and thus in its sales via collaborative platform
would be minimized.
This penalty imposition would also directly hurt the capacity of Uber Company in Costa Rica to
achieve indirect network effects. It would reduce its capacity to maintain the high levels of critical mass
achieved up to today (800,000 customers subscribed on one side of the platform, and 22,000 drivers on the other
side of the platform) (Avendaño, 2019). Therefore, its capacity to offer below average market prices would also
be diminished. Its average total costs are going to increase as a result of the penalty imposition in the short-run.
Therefore, its marginal cost would increase. The new short-run price that would prevail after paying the penalty
is equivalent to the regulated price applied in natural monopolies.
Another important economic effect taking place as a result of enacting Bill N. 21288 is the increase of
a 13% in the corporate income tax on the Uber Company‘s yearly profits (Avendaño, 2019) The short-run to
long-run effects of a 13% income tax are diverse. On one side, it could decide to charge this tax directly to the
customer by increasing the prices of ride services. On the other side, the Uber Company may not be concerned
with making profits in the short-run, and instead apply pricing strategies that would enhance its market
penetration. Its capacity of achieving a critical mass on both sides of the platform and obtaining indirect effects
could be slightly deterred if the tax payment is directly charged to the customer at a higher price with the
consequent reduction in the service quantity demanded. It is important to point out that this is a tax that is
charged to all firms in Costa Rica, unless the firm is categorized as an exemption. The Uber Company in Costa
Rica has stated in many occasions that it is willing to fulfill all local legal and tax regulations.
In addition to these new impositions that could be created once Bill N. 21288 is approved, there could a
new tax of 8.5% on all money transfers that collaborative transportation firms make overseas. It could have a
couple of economic and financial effects. Collaborative firms are going to think twice before sending their
corporate profits outside of Costa Rica. Even though this decision affects mainly the collaborative firms‘
operational costs, it would not have a direct effect on the price charged to customers. If this bill is approved, it
can affect the overall collaborative firm‘s capacity to generate indirect effects, and to apply effective pricing
strategies through the collaborative platform as well.
The above-mentioned economic effects of enacting Bill N. 21228 on the collaborative firm (the penalty
of $14 million USD, a 13% income tax on corporate profits and an 8.5% tax on remittances sent overseas), has a
common impact on how the market sets its price. The price is going to move from an efficient price currently
being offered to customers to a regulated price where the average total cost meets the demand curve. This bill
enactment would lead to a higher ‗regulated‘ price (as depicted in Figure N. 1), and a lower quantity supplied, or
quantity demanded (depending on whether we are talking about the driver or the customers). Any combination
of these economic effects would lead to a higher price which would take collaborative transportation firms a
step closer to the price that traditional T.A. taxi drivers have as a traditionally regulated sector.
4.2. Possible economic consequences of Bill N. 21288 on collaborative transportation drivers
The enactment of Bill N. 21228 on collaborative transportation firms can cause several economic effects on
the collaborative drivers, which revolve around the concept of setting a ‗regulated‘ price.The first expected
economic imposition to be applied to the collaborative drivers is a 13% value-added tax effective July 2019.
This tax will be charged regardless of Bill N. 21228 being approved or not. It will increase the price for the
customer directly, and indirectly increase the financial and economic opportunity cost for every collaborative
driver since he/she will have to keep very good accounting records along with the submission of the tax forms
linked to it. It will be required for a collaborative driver to hire an accountant to do the accounting in an
effective manner. It is hard to estimate how many of the 22,000 Uber drivers in Costa Rica today will be willing
to adopt these measures. It is expected that it is going to decrease the quantity supplied of services, along with
an increase in the price to the customer because of the value-added tax.
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The other financial impositions that are expected to take place with Bill N. 21228 are the following levies
(the use of these levies is explained above):
$200 for obtaining the ‗right‘ to be registered with PTC as a multi-sided platform.
$35 to obtain the driver´s code.
The total yearly sum that collaborative drivers would need to pay to operate legally is $235. The economic
effects of these two levies are going to be applied noticeably mainly in the price charged by collaborative
drivers, or in the collaborative firm´s costs, or in a combination of the customer price and the firm´s costs. If the
collaborative driver and the Uber Company decide to pass these levies on to the customers, it would increase the
collaborative hailing rides‘ price. If the Uber Company decides to assume the two levies as their responsibility,
then its operational average total costs would increase which would could eventually also be reflected in the
collaborative hailing ride´s price. The hailing ride price would get closer and closer to what the traditional
‗regulated‘ T.A. taxi drivers have conventionally charged their customers.
Lastly, a 3% surcharge is to be included in every collaborative hailing ride service. So, every customer
who requests a ride service from the collaborative platform would be charged in the invoice an additional 3%.
Similarly, as with the 13% value-added tax or the two levies, the price charged by collaborative drivers to its
customers would increase because of higher average total costs, leading to a regulated price that is closer to
what traditional ‗regulated‘ T.A. taxi drivers have commonly charged their customers.
The impositions by themselves or a combination of the 13% value-added tax, the $235 levies, or the
3% surcharge, share a common economic effect that could impact the individual driver and customer. In all
cases, the price for the hailing ride service would increase to a level similarly to the one currently charged by the
traditional ‗regulated‘ T.A. taxi drivers. However, the collaborative platform firms have on their behalf the
innate characteristics that have made the Uber Company in Costa Rica successful: interdependence, indirect
network effects, and achievement of critical mass via pricing strategies. Could these innate characteristics of the
collaborative transportation market outweigh the expected regulations that are about to be discussed and
eventually approved in the Costa Rican Congress in the long-run?
F. Final remarks
The experience of collaborative or sharing transportation platform firms in developing countries,
specifically in Costa Rica, has demonstrated that no country was ready to embrace and regulate such an
innovative economic sector. The lack of a well-defined, politically accepted, and updated regulatory policy has
led to market frictions with an uncertain future.
The successful entry of the Uber Company in Costa Rica has created the necessary conditions for it to
obtain and maintain the required critical mass, indirect network effects and interdependence that platform
economics states are needed for its sustainability and growth. However, it has also created some ‗antibodies‘
among the rent-seeking groups conformed by the traditional taxi guilds and the Ministry of Public Works and
Transportation. These two contending forces, the economic one represented by the Uber Company and the
regulatory one represented by the political proponents (guilds and Ministry of Public Works and Transportation)
of Bill N. 21288, are expected to find either a midpoint in which the two forces will be able to coexist, or in the
worst case scenario, one of the sides decides to take stronger legal or economic action against the other.
The overall expectation is that the Uber Company will gain access to the needed legality in conformity
with the Costa Rican Law if it adopts the requirement of Bill N. 21288, but at a very high cost to its customers.
The expected economic impacts of the new bill are higher regulated prices, a lower quantity supplied of the
collaborative drivers, and a collaborative sector so restrained of its innate economic characteristic that it may be
pushed away from its raison d’etre.
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References
that drivers were attracted towards the exible work hours and the incentives provided by Uber. The presence
of sophisticated Uber application and lower price
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