Abstract
The platform model of business has allowed peer-to-peer interactions that expand the universe of opportunity for providers and users of goods and services. In addition to the numerous benefits of the platform model, it has been fraught with its share of unanticipated challenges to consumer equality – a critical measure of the social welfare. Grounded in the Power-Responsibility Equilibrium framework, this study examines the most aggressive form of consumer action, filing a lawsuit against the platform company, in response to discrimination experienced by consumers on the platform. An analysis of the five legal cases brought by consumers against Roommates.com, Airbnb, and Uber highlights how current laws may be ineffective in addressing the problem of discrimination in the online marketplace against members of protected categories such as race, sexual orientation, and disability. We provide implications for platform companies and public policy makers for changes to promote equality in the sharing economy.
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