Keynote talk by Arun Sundararajan at Tokyo's first Sharing Economy Summit, organized by the Sharing Economy Association of Japan, which coincided with the release of the Japanese language translation of "The Sharing Economy."

1. The Future of the Sharing Economy:
How Crowd-Based Capitalism will Change Our Lives
Arun Sundararajan
New York University

3. what is “crowd-based capitalism”?

4. institution-based crowd-based
© Arun Sundararajan, 2016

5. institution-based crowd-based
© Arun Sundararajan, 2016

6. institution-based crowd-based
© Arun Sundararajan, 2016

7. institution-based crowd-based
© Arun Sundararajan, 2016

8. institution-based crowd-based
© Arun Sundararajan, 2016

9. institution-based crowd-based
© Arun Sundararajan, 2016

10. institution-based crowd-based
© Arun Sundararajan, 2016

11. institution-based crowd-based
© Arun Sundararajan, 2016

12. BANK
FOOD
HOTELS
REAL ESTATE
RETAILING
HEALTHCARE
TRANSPORTATION
DIVERSIFIED LABOR
PERSONAL SERVICES
CORPORATE SERVICES
RENTAL CAR COMPANY
EARLY-STAGE FUNDING
the ‘sharing economy’

13. An economic system with the following characteristics
• Crowd-based networks + centralized hierarchies
• High-impact distributed capital
• Blurring of lines
• marketplace and traditional company
• personal and professional
• casual work and full-time work
© Arun Sundararajan, 2016
sharing economy and crowd-based capitalism

16. a new way of organizing economic activity
managerial capitalism crowd-based capitalism
© Arun Sundararajan, 2016

17. institution-based crowd-based
© Arun Sundararajan, 2016

19. COMMUNITY
GOVERNMENT
BRAND
(DIGITAL)
COMMUNITY
INSTITUTIONS
digital trust powers the sharing economy
© Arun Sundararajan, 2016

20. © Arun Sundararajan, 2016
http://blablacar.com/trust

21. INSTITUTIONS AND
CONTRACTS
GOVERNMENT OR
THIRD-PARTY
CERTIFICATION
BRAND
(CERTIFICATION)
CULTURAL DIALOG
(FAMILIARITY)
DIGITAL CONDUITS
TO INDIVIDUAL
TRAITS
DIGITIZED
SOCIAL CAPITAL
DIGITIZED
PEER FEEDBACK
PRIOR BILATERAL
INTERACTION
ENTP
the digital trust grid
© Arun Sundararajan, 2016

24. “Technology is seductive when what it
offers meets our human vulnerabilities.
And as it turns out, we’re very
vulnerable indeed. We are lonely but
fearful of intimacy. Digital connections
and the sociable robot may offer the
illusion of companionship without the
demands of friendship. Our networked
life allows us to hide from each other,
even as we are tethered to each other.”
2012

25. “Whether or not it is the presence of the
machine and its iron discipline that creates, as so
many argue in our day, the conditions of
depersonalization and alienation in modern
mass culture, the fact is plain that the
contemporary sense of anxiety and insecurity is
associated with not merely an unparalleled
mechanical control of environment but, more
importantly, with widespread faith in such
control.”
1953

26. On the socially atomizing effects of the modern
forces of technology, individualism, and the
division of labor:
“What is in fact characteristic of our
development is that it has successively
destroyed all the established social contexts;
one after another they have been banished
either by the slow usury of time or by violent
revolution, and in such fashion that nothing
has been developed to replace them.”
1897

27. “Our need to reach out to and connect
with others is a primary driver behind our
behavior. New research using fMRI shows
that our brains react to social pain and
pleasure in much the same way as they
do to physical pain and pleasure. Who we
are is linked to the important people and
groups in our lives – the result of our
deep social wiring and necessary for our
success as a species.”
27

28. economic and strategic impacts
new directions for policy
the future of work
© Arun Sundararajan, 2016

29. increased capital “impact”
more variety, more consumption
“buy up to rent out”
inclusive growth
fundamental economic impacts are positive

30. Is there inherent economic benefit
to decentralized capital?
Does the individual owns intangible
assets (portable reputation)?
Do providers own platform equity?
The pace of AI/robotics automation
what factors could lead to reduced inequality?

31. economic and strategic impacts
new directions for policy
the future of work
© Arun Sundararajan, 2016

32. government platform

33. platforms as partners
data-driven delegation
APIs replace audits

34. economic and strategic impacts
new directions for policy
the future of work
© Arun Sundararajan, 2016

35. company platform

36. a new individual-institution relationship

38. creating and funding
a new social contract

39. automation and provider collectives

40. (new) shared ownership structures?

41. career paths and community

42. @digitalarun
http://s12y.com
digitalarun@nyu.edu
www.linkedin.com/in/digitalarun
www.facebook.com/digitalarun