Deregulation and the Sharing Economy

Post an initial response of 1000 word (maximum) to the Discussion Board that addresses the following questions:

  • What are the political/intellectual reasons and the economic reasons that Hammond and Knott suggest lead to deregulation? How do regulated industries, in general, benefit from regulations? In what ways was the regulated industry in the case you chose (either the taxi industry or the hotel industry) benefiting from regulation?

  • With regard to the case you chose (either Uber or Airbnb), how did the firms arise on an “unregulated fringe” of the industry and how were they able to avoid complying with the regulations that competitors faced? How did traditionally regulated firms (such as the taxi industry or the hotel industry) respond to these new market entrants?
  • Given the various factors that impact the likelihood of either extension of regulation to the new firm or the easing of regulations for the old firms, which response seems to be taking place with regard to the case you chose? How might Hammond and Knott explain why, in this case, the government is attempting to either expand regulations to include the new firm or ease regulations for the old firm? In 5 years, how do you expect regulation in this industry to evolve? Will Uber or Airbnb function as members of the regulated industry or will deregulation of the industry occur? Explain the logic behind your prediction (This is your own prediction – there is no right or wrong answer).


Government and Business:
American Political Economy in Comparative Perspective

Chapter 11, “Regulatory Policy” (pp. 227–246)

Chapter 12, “Antitrust and Competition Policy in the New Economy” (pp. 247–265)

Lehne, R. (2013).

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