Sharing Economy: Towards a Hybrid Regulation Theory

Sharing economy companies like Airbnb, Uber, and Lyft face regulatory challenges as they operate under outdated laws. Current government regulations do not adequately address the unique issues of the sharing economy (SE). This research examines these regulatory challenges and explores alternative approaches. The study identifies five key issues in the SE: consumer and supplier protection, negative externalities, unfair competition, innovation hurdles, and slow regulatory responses. It also discusses three alternative regulatory approaches: self-regulation through industry associations, experimental government regulations, and new regulatory frameworks. These approaches have not been comprehensively examined in the existing literature. The study aims to advance SE by proposing a hybrid regulatory model that bridges existing gaps, offering a guide for SE participants and governments to achieve more efficient regulation.