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67 Emory L.J. 197 (2017-2018)
The Myth of the Sharing Economy and Its Implications for Regulating Innovation

handle is hein.journals/emlj67 and id is 213 raw text is: 











       THE   MYTH OF THE SHARING ECONOMY AND ITS
       IMPLICATIONS FOR REGULATING INNOVATION

                                Abbey  Stemler*

                                   ABSTRACT

    A deflated air mattress rests in the corner ofAirbnb 's world headquarters.
It symbolizes how  Airbnb  allows regular, local people to earn extra income by
renting out space in their homes. Yet, this symbolism fails to represent what the
company has become-a unicorn receiving much of its revenue from
professionals  with  full-time  listings. The  poorly  folded  wad   of  plastic
exemplifies  the Myth  of the Sharing  Economy, which has been consistently
used  to subvert regulation.

    The Myth   convinces people  that the sharing economy  is comprised  of self-
regulating  Platforms, which  allow  microentrepreneurs   to utilize their excess
capacity  in an altruistic manner.  However,   the sharing economy   is actually
comprised   of companies  driven as much  by market  forces and failures as any
taxicab  company  or hotel chain. The  Myth possesses  an  appeal that is simple
and  seductive. It takes the familiar  idea of sharing  to make  the claim  that
Platforms  are unique  and should be subject to new  and different regulation or
no   regulation  at  all. This  Myth   not  only  harms   Platform   users,  the
environment,  and  the culture and diversity of communities, but it has enabled
sharing  economy  Platforms  to become  powerful  influencers in Silicon Valley,
state legislatures, and beyond.

    While   much   has  been  written  regarding  the  benefits of  the sharing
economy   and how  to regulate it, and disruptive innovations more broadly, this
Article is the first to critique the sharing economy by exploring the intersection
between  narrative and  regulation. It also distills lessons for regulating future


     * Assistant Professor of Business Law and Ethics, Kelley School of Business, Indiana University. J.D.,
Indiana University Maurer School of Law, M.B.A., Indiana University Kelley School of Business. I am
grateful for the feedback and insights shared at the Big Ten Research Colloquium hosted by the University of
Maryland, the American Legal Fictions symposium hosted by the Savannah Law Review, and the National
Business Law Scholars Conference hosted by the University of Utah S.J. Quinney College of Law. I would
also like to thank Todd Haugh, Jamie Prenkert, Joshua Perry, Angie Raymond, Scott Shackelford, Matthew
Turk, and Karen Woody for their thoughtful comments on early drafts of this Article. Finally, I greatly
appreciate Blake Himebaugh's and Jarod Zimmerman's excellent research assistance and the Emory Law
Journal's outstanding and professional staff and executive board.

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