Shannon Roddel | February 27, 2020
The “sharing economy” is a defining feature of the millennial generation, allowing people to earn money from renting their assets that may be sitting unused, including homes, spare bedrooms and vehicles.
Modern marketplaces like Uber and Airbnb necessitate trust among complete strangers, and new research from the University of Notre Dame examines that trust and the ways in which it differs among platforms.
"Trust in Sharing Encounters among Millennials," published in Information Systems Journal by Nicholas Berente, the Viola D. Hank Associate Professor of IT, Analytics, and Operations at the University of Notre Dame’s Mendoza College of Business, studies 1,047 millennials who work with Uber and Airbnb — both as customers and as providers — to understand how different sharing platforms build trust.
“We find that Uber only requires trust in the platform,” Berente said. “Drivers and customers do not need to trust each other much as long as they trust Uber. Airbnb, on the other hand, requires that consumers and providers do build trust in one another in addition to trusting the platform.”
The difference, the study shows, is due to “dimensionality” or variety of details. Uber is considered a low dimensionality sharing encounter that only warrants institutional trust, while Airbnb involves higher dimensionality, which requires its platform providers to find ways to build trust between renters and customers.
Read more here.