Abstract
The sharing economy is a new online community that has important implications for offline behavior. This study evaluates whether engagement in the sharing economy is associated with an actor’s aversion to risk. Using a web-based survey and a field experiment, we apply an adaptation of Holt and Laury’s (2002) risk lottery game to a representative sample of sharing economy participants. We find that frequency of activity in the sharing economy predicts risk aversion, but only in interaction with satisfaction. While greater satisfaction with sharing economy websites is associated with a decrease in risk aversion, greater frequency of usage is associated with greater risk aversion. This analysis shows the limitations of a static perspective on how risk attitudes relate to participation in the sharing economy.
Highlights
In the 1960s, the hippy movement promoted the resurgence of barter systems and the end of personal property
As part of a larger study evaluating the effect of engagement in the sharing economy on trust behavior, this paper analyzes the relationship between engagement in the sharing economy and risk aversion
This means that for each unit increase in frequency, keeping everything else constant, risk aversion will increase by 0.302 log counts
Summary
In the 1960s, the hippy movement promoted the resurgence of barter systems and the end of personal property This movement largely did not survive the decade, but contributed to a similar phenomenon that has recently taken shape [1]. Members of the sharing economy meet and exchange goods or services via websites and email listservs. Rather than pilgrimaging to Berkeley, sharing economy members with common interests connect from around the globe through servers based in Palo Alto. The. Games 2015, 6 implications of this online network for social behavior could be enormous. As part of a larger study evaluating the effect of engagement in the sharing economy on trust behavior, this paper analyzes the relationship between engagement in the sharing economy and risk aversion
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