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Trust and the
Sharing Economy
Topics of Interest
• Defining sharing economies
• Current trust indicators
• Solving the trust issue
Defining Economies

Commercial economies: “prices are the primary
source of information about, and incentive for,
resource allocation”
 Sharing economies: “non-price-based social
relations play those roles.”

     - Yochai Benkler, “Sharing Nicely”
Lessig’s Hybrid Economy

Hybrid economies: “one that builds upon both the
sharing and commercial economies, one that adds
value to each … either a commercial entity that
aims to leverage value from a sharing economy, or
it is a sharing economy that builds a commercial
entity to better support its sharing aims”

     - Lawrence Lessig, “Remix”
Three Stages So Far
• Purely digital
  – Flickr, YouTube, forums, communities, etc.


• Focused on sharing
  – Freecycle, Couchsurfing


• Driven by value
  – Airbnb, Skillshare, WhipCar, Spinlister, SnapGoods
The Rise of a New Term…

Collaborative consumption: “an economic
model based on
sharing, swapping, bartering, trading or renting
access to products as opposed to ownership”

     - Wikipedia
What Can You Share?
Altruism vs. Value
When Trust Fails
Airbnb Aims To Fix It




•   $50,000 Host Guarantee
•   Address verification
•   24/7 hotline
•   Social verification dashboard
•   And a whole lot more…
Transparent Profiles
Integrating the Social Graph
Airbnb’s Social Connections
Bespoke Insurance
• Insurance for unusual items
• Love Home Swap is working with Lloyd’s to
  develop insurance for housing swaps
TaskRabbit: An Intense Application
• Essays
• Video Interview (OVIA screening platform)
• Criminal background check
  – SSN, name, address
  – National, state, local levels
Sittercity: Many Profile Checks
TaskRabbit: Leaderboards
Done.com: Credit Card Verification
TrustCloud: A Reputation System
• Mission: help users understand and leverage
  online trust they’ve built in the sharing economy
• Immediately accessible, portable, objective,
  transparent, secure
TrustCloud’s Methodology
• Data vapor: transparency, consistency, longevity
   – Twitter, Facebook, LinkedIn, Google+
• Virtuous data: credible, reliable, helpful
   – Yelp, TripAdvisor, Quora
What about Influence?
• Klout: standard measurement of influence
  – measures network size, posting frequency, amplification
  – 1-100 scale
The Influence Wars
• Kred enters the area
  – Influence: 1-1000 score based on retweets, followers, replies
  – Outreach: 1-10 score on generosity; rewards actions, interactions with others
Kred Scores are Transparent
• Kred shows users an “Activity Statement”
Online Meets Offline
• Kred lets users pull in “Offline Kred”
Influence vs. Reputation
• Doesn’t account for negative feedback
  – 400 negative @mentions = 400 positive @mentions

• Quantity over quality
  – Network size
  – Posting frequency
  – Responses
Solving the Trust Issue
•   Incorporating transparent profiles
•   Integrating the social graph
•   Developing bespoke insurance
•   Implementing screening processes
•   Ranking users on a leaderboard
•   Verifying buyer credibility
•   Creating a reputation system
•   Pulling in offline credibility
How can we
solve the trust
  problem?

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Trust and the Sharing Economy

  • 2. Topics of Interest • Defining sharing economies • Current trust indicators • Solving the trust issue
  • 3. Defining Economies Commercial economies: “prices are the primary source of information about, and incentive for, resource allocation” Sharing economies: “non-price-based social relations play those roles.” - Yochai Benkler, “Sharing Nicely”
  • 4. Lessig’s Hybrid Economy Hybrid economies: “one that builds upon both the sharing and commercial economies, one that adds value to each … either a commercial entity that aims to leverage value from a sharing economy, or it is a sharing economy that builds a commercial entity to better support its sharing aims” - Lawrence Lessig, “Remix”
  • 5. Three Stages So Far • Purely digital – Flickr, YouTube, forums, communities, etc. • Focused on sharing – Freecycle, Couchsurfing • Driven by value – Airbnb, Skillshare, WhipCar, Spinlister, SnapGoods
  • 6. The Rise of a New Term… Collaborative consumption: “an economic model based on sharing, swapping, bartering, trading or renting access to products as opposed to ownership” - Wikipedia
  • 7. What Can You Share?
  • 10. Airbnb Aims To Fix It • $50,000 Host Guarantee • Address verification • 24/7 hotline • Social verification dashboard • And a whole lot more…
  • 14. Bespoke Insurance • Insurance for unusual items • Love Home Swap is working with Lloyd’s to develop insurance for housing swaps
  • 15. TaskRabbit: An Intense Application • Essays • Video Interview (OVIA screening platform) • Criminal background check – SSN, name, address – National, state, local levels
  • 18. Done.com: Credit Card Verification
  • 19. TrustCloud: A Reputation System • Mission: help users understand and leverage online trust they’ve built in the sharing economy • Immediately accessible, portable, objective, transparent, secure
  • 20. TrustCloud’s Methodology • Data vapor: transparency, consistency, longevity – Twitter, Facebook, LinkedIn, Google+ • Virtuous data: credible, reliable, helpful – Yelp, TripAdvisor, Quora
  • 21. What about Influence? • Klout: standard measurement of influence – measures network size, posting frequency, amplification – 1-100 scale
  • 22. The Influence Wars • Kred enters the area – Influence: 1-1000 score based on retweets, followers, replies – Outreach: 1-10 score on generosity; rewards actions, interactions with others
  • 23. Kred Scores are Transparent • Kred shows users an “Activity Statement”
  • 24. Online Meets Offline • Kred lets users pull in “Offline Kred”
  • 25. Influence vs. Reputation • Doesn’t account for negative feedback – 400 negative @mentions = 400 positive @mentions • Quantity over quality – Network size – Posting frequency – Responses
  • 26. Solving the Trust Issue • Incorporating transparent profiles • Integrating the social graph • Developing bespoke insurance • Implementing screening processes • Ranking users on a leaderboard • Verifying buyer credibility • Creating a reputation system • Pulling in offline credibility
  • 27. How can we solve the trust problem?

Editor's Notes

  1. YochaiBenkler is the Berkman Professor of Entrepreneurial Legal Studies at Harvard, and faculty co-director of the Berkman Center for Internet and Society
  2. Commercial entity: AirbnbSharing economy: Flickr, YouTube, Craigslist“will dominate the architecture for commerce on the Web”PUBLISHED 2008Lawrence Lessig: Stanford professor and lawyer. Focused on digital intellectual property.
  3. Commercial entity: AirbnbSharing economy: Flickr, YouTube, Craigslist“will dominate the architecture for commerce on the Web”PUBLISHED 2008Lawrence Lessig: Stanford professor and lawyer. Focused on digital intellectual property.
  4. QUESTION: Anyone participated in collaborative consumption? If so, what’s your experience?
  5. QUESTION: Altruism versus value? Why did you participate?
  6. Personal story: not being able to decline (b/c search ranking)
  7. QUESTION: Has anyone used a site that integrated social connections to improve trust?
  8. Lloyd’s: specialist insurance market
  9. QUESTION: Has anyone applied for TaskRabbit?
  10. Buyers can request checks OR sitters can add checks to their profiles to improve chances
  11. connector, interactive, influencer, longtimerQUESTION:Has anyone used of TrustCloud?
  12. QUESTION: Who knows their Klout score (roughly)?FOLLOW-UP: Do you try to maintain your Klout score?