The Sharing Economy
共享經濟 The End of Employment and Rise of Crowd-based Capitalism 雇用的結束、以及群眾資本主義的興起 Chap 6
The Shifting Landscape of Regulation and Consumer Protection Developing a Sharing Economy System Oct 2013, AirBnB 225,000 New Yorkers users NY state attorney general Eric T. Schneiderman asked AirBnB to turn over host data More than taxes “Illegal hotels” law, 2010 Outlawded NYers livings in multi-unit dwellings their abodes for less than 30 days Residents could still be AirBnB hosts so long as they were present in their apartment No entire apartment Developing a Sharing Economy System Objected AirBnB Neighborhood safety Started renting out units Instead of long-term residents Exacerbates the affordable housing crisis Serious public safety concerns Data-Driven Delegation Developing a Sharing Economy System Share Better Developing a Sharing Economy System Complexities of the sharing economy Low-cost UberPop shutdown in Span, the end of 2014 Banned in Paris and Berlin, 2015 UberX Shutdown in Seoul in March 2015 Entire service Shutdown in New York’s East Hampton in June 2015 Investigated in Dutch in April 2015 Legalize Belgium by 2016, California & Virginia… .... Machine learning added value Integrate social responsibilities into platform Open innovation to its own regulation challenges and unresolved regulation challenges Chap 6
The Shifting Landscape of Regulation and Consumer Protection Summary and beyond Summary Multi-level self-regulatory platforms (Big) Data as a new communication and control intermediary The beyond New privacy（隱私） issues Liability（義務） and insurance（保險） Blockchain（區塊鏈）-based exchange and smart-contracts（智能合約）

1. The Sharing Economy
共e經濟
5he 1A9 of 1@Cloy@eAt 6A9 3iEe of 0row9!76Ee9 06Cit6liE@
雇用的結束T以及群眾資本主義的興起
0r6ig 0h6o
8h6o8r6ig.g@6il.8o@
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2. 217/,/7

3. Chap 6
The Shifting Landscape of Regulation
and Consumer Protection
317/,/7
那c卡在深植的x仰系統與體制中的社會，無法面對與解決新的社會複？性問題。
--- Douglass C. North, 於諾貝爾得獎演講，Dec 09, 1993

4. Developing a Sharing Economy
System
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5. Developing a Sharing Economy
System
! Oct 2013, AirBnB
! 225,000 New Yorkers users
! NY state attorney general Eric T. Schneiderman asked AirBnB to
turn over host data
! More than taxes
! “Illegal hotels” law, 2010
! Outlawded NYers livings in multi-unit dwellings their abodes for
less than 30 days
! Residents could still be AirBnB hosts so long as they were present
in their apartment
! No entire apartment
17/,/7 5
紐約檢察總長
非法旅館
有出租f在才可以

6. Developing a Sharing Economy
System
617/,/7
http://action.peers.org/
page/s/legalize-sharing-ny
Mishelle

7. Developing a Sharing Economy
System
! Objected AirBnB
! Neighborhood safety
! Started renting out units Instead
of long-term residents
! Exacerbates the affordable
housing crisis
! Serious public safety concerns
17/,/7 7
鄰戶安全T短約換長約T房價負擔T公安…

8. Data-Driven Delegation
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9. Developing a Sharing Economy
System
! Share Better
17/,/7 -
http://www.sharebetter.org/

10. Developing a Sharing Economy
System
1017/,/7

11. Developing a Sharing Economy
System
1117/,/7

12. Developing a Sharing Economy
System
1217/,/7

13. Developing a Sharing Economy
System
! Complexities of the sharing economy
! Low-cost UberPop
! shutdown in Span, the end of 2014
! Banned in Paris and Berlin, 2015
! UberX
! Shutdown in Seoul in March 2015
! Entire service
! Shutdown in New York’s East Hampton in June 2015
! Investigated in Dutch in April 2015
! Legalize
! Belgium by 2016, California Virginia…
17/,/7 13
https://en.wikipedia.org/wiki/Uber_protests_and_legal_actions
在不同城市衝突與停擺
在少數城市合法化

14. Developing a Sharing Economy
System
! Mayor Bill de Blasio
! Proposed cap on their provider numbers
17/,/7 14
AirBnB 在自己的 App
回擊紐約市長

15. Developing a Sharing Economy
System
! Expert and experienced talent
! Political strategist, the deputy commissioner for policy and
planning at the Taxi and Limousine Commission, …
! “It’s so much easier to have a conversation with someone
who actually understands how government works.”
! Why?
17/,/7 15
5he 4h6riAg e8oAo@y 8re6teE Aew w6yE of Crovi9iAg
f6@ili6r Eervi8eE th6t 6re tr69itioA6lly ofteA highly
regGl6te9 regGl6tory 8oAfli8t iE to 7e exCe8te9.
導入有經驗的政治窗口t對話
踏入a以往被監管的傳統經濟領域

16. Developing a Sharing Economy
System
! A robust regulatory infrastructure needed
! The scale of providers varies dramatically
! From M-billion dollar hotel chains to occasional Airbnb hosts
! In a way that preserves individual freedom, consumer safety,
not 6% harm 94%
! No crippling burden to city and state government
! Both an increase and a diversification of regulation
17/,/7 16
5he liAe 7etweeA CerEoA6l 6A9 CrofeEEioA6l 6re 7lGrriAg!
/ “C6rti8iC6tory @o9el”
「個f」與「專業」的界線“在模糊！
規模差異很大
不該也無法一體適用
參與式模式

17. Why Regulation Still Matters
! A safer and more reliable world
! Regulations are instruments used to implement social and
economic policy objectives
! Legal and administrative mechanisms designed to encourage
economic activity
! Market failure
! Monopolization
! New competition and diversifying the market
! Protect potential harm and ensure public safety
17/,/7 17
Regulation as an intervention to correct “market failure” approach.
為sh需要監管S
社會與經濟的目的
市場失靈
獨r
監管是一種g入去y“「市場失靈」的手段。

18. Why Regulation Still Matters
! Information Asymmetry（資訊不對稱）
! Externalities（外部性）
! Blurring boundaries between the Personal and the
Professional（專業模糊）
! The Evolution of Regulation（監管的演化）
17/,/7 1,

19. Information Asymmetry:
When One Party Knows More than
the Other
! Information Asymmetry（資訊不對稱）
! Seller vs. buyer
! Adverse selection（逆，擇）
! Lemon used cars
! Moral hazard（）德危機）
! Less careful
! Reckless driving
! Lower effort
! Lower level of cleanliness
17/,/7 1-

20. Information Asymmetry:
When One Party Knows More the the
Other
! Pre-Internet P2P economic exchange
! Government
! Embed exchange into a trusting local community(village, family, suburban
neighborhood…)
! 3rd party certifying body
! Example
! Taxi fair by screening + meter
! Internet platform
! Natural incentive to try and reduce information failure
! Online trust platform
! Social capital, digital reputation system
! Lyft
! In-person driver screenings, criminal background checks, assess driving history
! Airbnb
! July 2013, 300 customer service, 50 dedicated to promoting trust and safety 17/,/7 20
有網路以前，h在到處d易
網路時i，平台有自然誘因去建立機制Tv成d易

21. Externalities:
When Others Bear the Consequences
of My Actions
! Positive spillovers（“向溢出）
! (Positive) Network effect
! Negative externalities（負向外部性）
! Additional taxicab, noisy Airbnb guests
! Externalities of online platform（線上平台的外部性）
! Difficult to keep track
! Small scale and fluctuate
! Local externalities
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22. Blurring of Boundaries between the
Personal and the Professional
! Most people do these in ‘personal’（f際常見d易）
! Loan money to friends, pick up others, lend apartments to
relatives, make meal for guests
! No oversight, licensing, screening, taxation, or training…
! Sharing economy （共e經濟）
! Brought the informal exchanges into the main-stream economy
! “In-between” personal and professional
! Social challenges（社會挑戰）
! Apply a regulatory regime developed for full-time or large-scale
professional providers to smaller, semiprofessional providers
! Grassroots innovation vs. market failure
! Data trail for discrimination
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23. A Historical Example:
The Maghribi Trader（摩洛哥商f）
! Maghribi trader played a leading role in world trade in the
11th century
! Ship goods without travelling with them
! Might be rip off, lost, damaged… in the process
! Only hand-to-hand money exchange
! Trust ( enforcement) across geographic and cultural
boundaries
! Reputation(of agent)
! Self-interested community(coalitions)
17/,/7 23
摩洛哥商f透（商譽與商團約束，跨區域與跨文化d易

24. Matchmakers Over Three
Millennia
17/,/7 24
! Bartering（以物易物）
! Organized marketplaces emerged
! By 300 BCE, “emporion”(貿易處) near the docks in Athens（雅
典）
! shipowners, traders, lenders(creditors), … sharing economy
! Early 1400s CE, Renaissance（文藝復興） Europe has city-
states sponsored marketplaces, Fairs
! Merchants of French and German gathered together and
exchange goods for a given period time each year
! Concessions and bans on imports, settling disputes, developed
sufficient trust, extent credit, …

25. Economic Institutions and
Brand-based Trust
! Institutions（體制）
! Douglass North, 1993 Nobel Memorial Prize
! The humanly devised constraints that structure human interaction.
! Made up of formal constraints (rules, laws, constitutions), informal
constraints (norms of behavior, conventions, and self imposed
codes of conduct), and their enforcement characteristics.
! “rule of the game” of a society
! Contract cost is too expensive for myriad everyday transactions
! Examples
! IPR, Bank for strangers, corporate brands…
! Food safety: FDA + Brand
! Roller coaster in Disney…
! Pursuing a long-run profit motive
17/,/7 25
f類建立的遊戲規則，
減少合約成本，
！求長期獲利

26. Economic Institutions and
Brand-based Trust
! Why need a different trust infrastructure?
! Douglass North
! Rules may be changed overnight. Norms change gradually.
! The norms provide “legitimacy” to a set of rules
! Economies that adopt the formal rules of another economy
will have very different performance characteristics than the
first economy
! Because of different informal norms and enforcement
17/,/7 26
規則可以隨時改變，價值規範只能慢慢改變。
不同經濟體系有非常不同的績效特性。

27. Where the Sharing Economy Is
Taking Regulation
! Permissionless innovation（無許可創新）
! Reject the idea that creators of new technologies seek
permission from public officials before taking the service to
market
! Can you share and innovate by the book? You can, but first
someone has to write the book.
! Digital signals
! User-generated review
! side benefits: leading indicator to trace food-borne illness
! Self-interest of the platform alignment
! Ex. Ads quality? Noisy guests? …
17/,/7 27
可以照著書t創新嗎S
至少要先把書寫好S！
數p新機制

28. Where the Sharing Economy Is
Taking Regulation
! One-size-fit-all?
! How about renting out a hammock / a treehouse…?
! Occasional providers
! 90% AirBnb hosts, 2/3 Lyft drivers, EatWith/Feastly, Etsy…
! Safety is safety, and we can’t compromise on it!
! cost
! Restaurant inspections, kitchen hygiene… of home-made meals
! Falling sick vs. cost of running the inspection infrastructure
17/,/7 2,
舊法如s一體適用S
「安全」也有成本考量

29. Matchmakers Chap 9
Fakesters and Fraudsters
! Governing Bad Behavior by Platform Participants
! Facebook had about 150 employees, 1/15, looking for offensive
content and misbehavior
! Behavior Externality（行為外部性）
! If not alone in desert, externality is common
! Positive/negative externality
! Indirect network effect for multisided platform
! Direct network effect for the same group
! Consider behavior instead of facts/numbers（注重「行為」影響）
! The reason why communities/societies adopt laws, regulations,
policies, courts, authorities
! Multisided platforms are communities
! Successful platforms nurture the positive and minimize the negative
2-17/,/7

30. Behavior Badly
! Identity
! Faked name
! Keep privacy（隱私）
! Sexual predation（性u）, online harassment（騷擾）,
suicides（自殺）
! MySpace’s cyberbullying （網路霸凌）
! Lori Drew faking a young boy to orchestrated an online romance
with Megan Meier(16 years old), her daughter’s opponent, become
hostile and suggested her kill herself. She did.
! Fraud
! Misrepresentation of merchants, no shipping, …
! Alibaba’s escrow（x託）
! Information asymmetry with “lemons problem”
! QC（品管） of Apple Store
! Opportunistic behavior
! “Front-running”（先買入） of exchanges’ brokers
! “Drip pricing”（附加費） at the end of payment process using
credit cards
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(ref: https://en.wikipedia.org/wiki/Suicide_of_Megan_Meier )

31. Behavior Badly
! Bodily harm（身體傷害）
! Craiglist
! Raped or killed
! French ride-sharing（共乘） service BlaBlaCar
! 20M members in 19 countries
! Great pain to deal with this concern
! Id, photo, ratings…
! Ladies only…
! Physical vs. Virtual communities
! Lack of tools
! Repeated arrests drunk driving（重複酒駕） in City of LA
! Facebook can just disable accounts
! Digital tools
! No laws against for Lori Drew’s reprehensible（霸凌案） activities in Missori
! social network could at least monitor and detect
3117/,/7

32. Follow the Rules
! In early 1700s, England
! People traded the options（，擇權） or futures（期貨）
! The courts decide it was a form of gambling（賭博）
! In 1734, the British Parliament passed Sir Barnard‘s Act
! Options or futures are illegal, no much prosecution（徹底執行）
! In early 1800s, London
! Jonathan’s Coffee House
! Trade in stocks and securities, near the commodities exchange（貨物d
換）
! Physically rejected the reneged（違約） at first, and wrote the names
of fraudsters on a highly visible blackboard
! March 3, 1801, London Stock Exchange opened
! Regulations（監管） was monitored and adjudicated by a committee,
including full-time admins
! Trust!
! Rules and regulations preventing negative externalities
! Fulfill obligations（合約） and manipulate price
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33. Follow the Rules
! Multisided platforms
! BlaBlaCar
! Detailed set of “Terms and Conditions”, termination of membership
! eBay
! Rules and Policies
! Create a safe and fair environment for all members
! Prohibit from using profanity（褻瀆）, misrepresenting, outside sales
! Pay for buying, buy only want, retract（撤銷）; no manipulating price, no
failing delivery, no porn, no counterfeit
! Apple store
! Do something useful, unique or entertainment
! No plain creepy, no cheating system, no stealing data, no manipulating
rates, no ugly UI
! Top rejection reason
! You content is boring
! Facebook
! No ugly ads
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34. Get Out and Stay Out
! Ejecting participants
! Bouncers in nightclubs（夜店大漢）
! Ultimate threads
! “No show” policy in OpenTable
! 30 minutes advance before reservation time
! 4 “no show” / 12 months
! In 2011, Google
! JCPenny inserted keywords in thousands of websites for
jcpenny.com
! “Google Jail”（坐牢） for 90 days, such as “Samsonite luggage”
3417/,/7

35. Friendsters（朋友）, Fakesters（假
f）, and Fraudsters（壞f）
! Friendster
! Launched in March 2002, 3M+ users Nov 2003
! Most social networking sites focusing on dating
! Friendster’s founder: “too anonymous and creepy”; with Jdate, 20
pounds heavier or 20 years older
! Fakesters（假帳號）
! Some fakesters attracted most traffic and the limited server
capacity
! A young Vietnamese（越南） model posted her own provocative
photos（撩f照）
! Was deleted several times but reinserted
! Revenge（報復） by having fraudsters
! Growth slowed considerably
3517/,/7

36. Friendsters, Fakesters, and
Fraudsters
! MySpace
! Launched in Aug, 2003
! Welcome fakesters
! “Everything goes!”
! Vortex of perversion（墮落）
! The red light district on the web
! Brand advertisers
! Risky display
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37. Friendsters, Fakesters, and
Fraudsters
! Facebook
! Started in Feb, 2004
! Strict rules to prevent bad behavior
! Real identities（真實身n） and “real-name culture”
! Initially targeted to college students
! Started with Harvard.edu, expanded to selected groups *.edu
! Open in Sep 2006, 500 regional networks with emails
! Active steps to limit negative behavioral externalities
! Prohibit bully, intimidating（嚇f）, harassing; posting hateful,
threatening, pornographic, violence, nudity, drugs, …; blacklist of
forbidden names
! Porn cops（色情警察）
! “Report this” button
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38. 3,17/,/7

39. Where the Sharing Economy Is
Taking Regulation
17/,/7 3-
政府或第三方認證 品牌（認證） 體制合約 文化對話
（相o性）
數p足跡 數p化社會資產 數p化同儕回饋 先前的雙向b動

40. Future Regulatory Models
! Peer Regulation（同儕監管）
! Self Regulation（自我監管）
! Data-Driven Delegation（資料驅動監管）
17/,/7 40

41. Peer Regulation
! Berlin
! Anyone can walk on to a bus or subway without paying
! Plain-clothes inspectors of all ages
! Tourist often risk riding
! Citizens always have proof of fair
! Airbnb
! Public and private review
! No single benchmark needs to apply to every rental
! Myriad context and customer-specific standards
17/,/7 41
在柏林無f公開查票
AirBnB 多樣與客製的租房，公開與私下的意見回饋

42. Self-Regulatory Organization(SRO)
! SRO
! Not the same as the absence of regulation
! The defining, the enforcing, or both, of regulation by parties
other than government
! Policy an industry by formulating regimes of collective
rulemaking
! Like the merchant communities of Maghribi traders
! The modern SRO can audit and penalize members
! The American Medical Association(doctor), the National Association
of Realtors(realtor), and bar association(lawyer)
17/,/7 42
如同摩洛哥商會與現i公會

43. Self-Regulatory
Organization(SRO)
! Workable SROs
! Establish credibility early on through its performance（績效）
! Demonstrate strong enforcement（執行） capabilities
! Perceived as legitimate（合法） and independent（獨立）
! Take advantage of participants’ concerns（參與者考量） and
social capital（社會資產）
! Transportation Network Companies(TNC)
! A self-regulatory by the state of California in 2013
! The California Public Utilities Commission(CPUC) defined a set
of standards for drivers of smartphone-based point-to-point
taxis need to conform
! Delegated this enforcement responsibilities to this
platform(registered as TNC)
17/,/7 43
SRO 可行的四個條lR
加州市授權行動通訊計程車進行自我監管

44. Self-Regulatory
Organization(SRO)
! “Bill ALUR”—new national housing legislation
! A national law passed in March 2014
! Rent out the home in which you live, without having to ask
permission from your local city hall
! Paris, the most visiting city in the world, 40K+ Airbnb hosts
! Homeowners associations(HOAs)
! Minimize the impacts of certain externalities
! Continuous, high-bandwidth relationship with hosts and renters
! A grassroots alternative to zoning for an economy
! The line among the personal, commercial, (and government) are
increasingly blurred
17/,/7 44
法國可以m
意出租住家
家戶聯盟連結個fT商家與政府

45. Data-Driven Delegation
! A quasigovernmental role of a platform
! The delegation of tax collection
! Higher registration rate than directly to government
! Higher tax revenue
! Sidesteps privacy concerns
! Significant opportunities for the platform to build credibility
! Leveraging platform’s data to ensure compliance with a set of
laws
! Ex. Credit card fraud detection, flu prediction of Google vs. CDC
! Discrimination analysis
17/,/7 45
平台的半政府角色
善用平台的數據可以增進適法性

46. Data-Driven Delegation
! Red flag -- discrimination
! Harvard study, 2014
! African American hosts might have lower pricing power than white hosts on
Airbnb
! TaskRabbit’s president, 2014
! Trace data by data scientist: what drives somebody to select a tasker --- a smile
! Mandated transparency
! Raise fewer privacy concern
! Pose lower risk of leaking competitively harmful information
! SEC
! Publicly traded companies provide audited summary evidence（稽核彙整報表）
! Machine learning added value
! Integrate social responsibilities into platform
! Open innovation to its own regulation challenges and unresolved
regulation challenges
17/,/7 46
”視！S
明定的透明性

47. Chap 6
The Shifting Landscape of Regulation
and Consumer Protection
4717/,/7
1AtreCreAeGr 2overA@eAt

48. Summary and beyond
17/,/7 4,

49. Summary and beyond
17/,/7 4-

50. Summary and beyond
17/,/7 50
Greyball

51. Summary and beyond
17/,/7 51
Greyball

52. Summary and beyond
! Summary
! Multi-level self-regulatory platforms
! (Big) Data as a new communication and control intermediary
! The beyond
! New privacy（隱私） issues
! Liability（義務） and insurance（w：）
! Blockchain（區塊鏈）-based exchange and smart-contracts（智
能合約）
17/,/7 52

53. chaocraig@gmail.com
5317/,/7