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70 Vand. L. Rev. 1561 (2017)
Regulating Business Innovation as Policy Disruption: From the Model T to Airbnb

handle is hein.journals/vanlr70 and id is 1611 raw text is: 

    Regulating Business Innovation as

                   Policy Disruption:

          From the Model T to Airbnb

                              Eric Biber*
                           Sarah  E. Light**
                             J.B. Ruhl***
                         James  Salzman****

       Many   scholars have  invoked the term  disruptive innovation
when  addressing the platform (sharing) economy, with sweeping  claims
about  the  dramatic   changes  this development   promises  for  law,
regulation, and  the economy.  The  challenges raised by  the platform
economy  are  surely important, but we  argue  that recent scholarship
focusing on the immediacy and  novelty of the platform economy has been
ahistorical, and has therefore missed the bigger picture about how  to
regulate it. History is full of technological and management advances
that fundamentally  disrupted business models for a brief period of time.
When   business innovation  upends  a preexisting business model  in a
regulated industry, the result can be a disjunction between the structure
of the regulatory  system governing  incumbent   firms and   the firms
disrupting the industry: a policy disruption. Policy disruption can result
from conscious choices by entrepreneurs to exploit legal loopholes or to
challenge regulatory protections for incumbents. But it can just as easily
result from gaps in a regulatory regime or fundamentally new  business
models  that solve problems legal regimes have been designed to address.
This Article is the first to offer a comprehensive analytical framework of

   *  Professor of Law, UC Berkeley School of Law.
   ** Assistant Professor of Legal Studies and Business Ethics, the Wharton School, University
of Pennsylvania.
   *** David Daniels Allen Distinguished Chair of Law, Vanderbilt Law School.
   **** Donald Bren Distinguished Professor of Environmental Law, UCLA Law School and
UCSB Bren School of Environmental Science and Management. The authors are thankful for the
comments received on early versions of this work by Tom Donaldson, Elizabeth Pollman, David
Spence, Kevin Werbach, and participants at workshop presentations at the BYU, Florida
International, and Vanderbilt law schools, the UCSB Bren School, and the Legal Studies and
Business Ethics Department at Wharton. We are also appreciative of the research assistance
received from Sophia Huang, Alexander Cooper, and Adam Tsao.

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