Regulatory approaches to the sharing economy

18 February 2016

The sharing economy is based on reductions in transaction costs which enable exchanges that were previously not possible. Sharing economy firms facilitate a more efficient use of assets, to the benefit of both asset owners and prospective users. Its potential positive impact on welfare has been estimated at over €1,000 per EU citizen. There is reason to doubt that a special regulatory regime is needed for sharing economy businesses. However, the rise of new business models does underline the need to adapt employment and tax rules to the new circumstances.

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