Research reveals sharing economy 'myth,' argues for regulation of firms such as Uber, Airbnb

BLOOMINGTON, Ind. -- States and communities have struggled to protect consumers through regulation of ride-sharing and short-term rental companies such as Uber and Airbnb, because these businesses have successfully used rhetoric and their users to perpetuate a "myth" that their mission is primarily altruistic.

"This myth convinces people these self-regulating, platform companies in the sharing economy are good because they allow regular people to earn just a little bit of extra income," said Abbey Stemler, assistant professor of business law and ethics in Indiana University's Kelley School of Business. "However, the sharing economy is actually comprised of companies driven as much by market forces and failures as any taxicab company or hotel chain."

In "The Myth of the Sharing Economy and Its Implications for Regulating Innovation," published in the Emory Law Journal, Stemler presents a thorough and critical review of this growing sector of the economy and argues why these companies shouldn't be self-regulated.