I ran across an interesting blog post on the website of the American Enterprise Institute. It provided an introduction to an organization called Peers.org and their attempt to create a "sharing economy."
Here's the link to their video
https://www.youtube.com/watch?v=UzdSKHA-FvI
The idea would seem to be a good one. We have an attempt to show that our "self-interest" benefits by cooperation.
I would maintain that is similar to the modern market place. You and I meet the market place to cooperate through mutual exchange and we both benefit.
My question for the class is "Does the Peers.org approach lend itself to unethical behavior through free-riders; or does it merely simplify the marketplace with a return to barter based on some level of comparative advantage instead of using money as medium of exchange?"
I hope this generates some discussion.
I also remind you that you are responsible for initiating posts as well as commenting on posts by me or your fellow students as part of the course expectations.
I think the Peers.org approach of creating this "sharing economy" is a very interesting and intriguing concept. In today's society social media is king and sharing information has never been easier. The technology we have enables us to share information in no time with minimal effort. In my opinion this is an opportunity to capitalize on one of our greatest strengths which is "sharing". Now this idea could lend itself to free riders who just wanted to take advantage of every easy situation, however I think if the "sharing economy" was give some time to develop it could be extremely effective. This theory has the potential to efficiently replace money as the medium of exchange by simplifying the marketplace with an open return to barter system. Now obviously this is a bit of a leap in terms of realistically happening, but I think if developed properly this could turn into something special if we learn to take advantage of our strengths which is technology and sharing in the marketplace.
ReplyDeleteI think that the approach of Peers.org is an interesting method that could be applied using the modern communication technology that is readily available. However, I do no think that this "sharing economy" would lend itself easily to freeloaders, due to the nature of its exchange system. Throughout the video, there are instances in which services were paid for on hand with an object with the bartering happening instantaneously. If implemented with the self-interest that we have discussed in class in mind, then the bartering system could in theory work, as people would not provide a service unless they received payment. This hesitance would lead to the eradication of free-loaders, because no one would provide a service or good until they were sure of their trade for the sake of their own self-interests.
ReplyDeleteHowever, I do not think that this system would work. Even with the implementation of new technologies, there are still many inequalities in the needs and lifestyles of the global community. I do not think that with the amount of goods and the number of nations that a return to a barter economy would work on a global scale. You may take this as pessimistic, but I do not think that the scale and diversity of the modern economy would allow for a market based in bartering.
I agree with Sarah; this approach that is used is very interesting. I share similar feelings with Sarah on the topic of the "sharing economy" not lending itself to free loaders. I believe that through the exchange system people act on their self-interest and use this as a motivation to exchange. If this exchange system worked, then people would only exchange goods with something that would be beneficial to their own self-interests. As Sarah stated previously, I believe this means of exchange includes the demand for something in return for the trade. This demand for return will disable the free loaders ability to obtain goods or services. Thus, the free loaders would not be able to sustain themselves and dwindle in numbers.
ReplyDelete