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The dark side of the sharing economy: A systematic literature review of externalities and their regulation

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  • Mosaad, Mohamed
  • Benoit, Sabine
  • Jayawardhena, Chanaka

Abstract

As the sharing economy has grown, externalities, i.e., “dark sides,” have also surfaced. The intricacies surrounding these externalities and their regulatory measures have garnered significant scholarly interest; however, there remains a lack of comprehensive guidance on the appropriate regulatory approaches. Based on a systematic literature review of 99 papers, we provide an overview of two regulatory approaches (government and self-regulation) to address the sharing economy’s economic, social, and environmental externalities affecting multiple stakeholders. We show that government regulation entails mechanisms based on avoiding, limiting, and guiding, while self-regulation entails mechanisms related to market entry, operation, and monitoring. We develop an externalities-based regulatory framework to suggest how these two approaches and recommended regulatory mechanisms could address each externality. Furthermore, we use our regulatory framework as a base to suggest a future research agenda and to discuss managerial implications.

Suggested Citation

  • Mosaad, Mohamed & Benoit, Sabine & Jayawardhena, Chanaka, 2023. "The dark side of the sharing economy: A systematic literature review of externalities and their regulation," Journal of Business Research, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:jbrese:v:168:y:2023:i:c:s0148296323005453
    DOI: 10.1016/j.jbusres.2023.114186
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    References listed on IDEAS

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    1. Shuai Wang & Shuang (Sara) Ma & Yonggui Wang, 2021. "The role of platform governance in customer risk perception in the context of peer-to-peer platforms," Information Technology for Development, Taylor & Francis Journals, vol. 27(4), pages 760-778, October.
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    Cited by:

    1. Ozuna, Edna & Steinhoff, Lena, 2024. "“Look me in the eye, customer”: How do face-to-face interactions in peer-to-peer sharing economy services affect customers’ misbehavior concealment intentions?," Journal of Business Research, Elsevier, vol. 177(C).
    2. Hartl, Barbara & Marth, Sarah & Hofmann, Eva & Penz, Elfriede, 2024. "‘One bad apple won’t spoil the bunch’ – Representations of the “sharing economy”," Journal of Business Research, Elsevier, vol. 176(C).

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