Open Access. Powered by Scholars. Published by Universities.®

Law and Economics Commons

Open Access. Powered by Scholars. Published by Universities.®

The Peter A. Allard School of Law

Local Regulation

Articles 1 - 1 of 1

Full-Text Articles in Law and Economics

Capturing Excess In The On-Demand Economy, Erez Aloni Jan 2017

Capturing Excess In The On-Demand Economy, Erez Aloni

All Faculty Publications

Activities facilitated by on-demand platforms (such as Airbnb or Uber) produce varying levels of negative and positive externalities. In this Article I submit that the type and quantity of externalities produced are determined by the location of the activity along a spectrum of increased utilization. Transactions that make use of excess capacity produce the fewest negative externalities and produce more positive externalities. The more we move along the spectrum away from use of excess capacity and toward new capacity created for the platform use, the more negative externalities the activity produces. Thus, unique sets of rules should govern the categories …