Categories
Uncategorized

Can Product Manufacturers Benefit from the Sharing Economy? | Sustainable Brands

The study, “Collaborative consumption: Strategic and economic implications of product sharing,” analyzed and explored the impacts of peer-to-peer product sharing on a range of manufacturers. The researchers – marketing and finance professors from Washington University in St. Louis and Shanghai University in China – concluded that consumers indeed buy less when they have the option […]

The study, “Collaborative consumption: Strategic and economic implications of product sharing,” analyzed and explored the impacts of peer-to-peer product sharing on a range of manufacturers. The researchers – marketing and finance professors from Washington University in St. Louis and Shanghai University in China – concluded that consumers indeed buy less when they have the option of sharing, but also found that firms can benefit if they strategically choose retail prices and increase quality. For products with high marginal costs in particular, doing so can lead to higher profits and lower consumer surplus.

Source: Can Product Manufacturers Benefit from the Sharing Economy? | Sustainable Brands

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.