User Perceptions of Fairness and Regulation in the Sharing Economy

The evolution of the sharing economy over the last decade has ushered in a variety of techno-logical advances, particularly with regard to intelligent matching software and connectivity services. However, these advancements are often framed within a dichotomy of ‘beneficial innovation’ and ‘obstructive regulation’. Although greater insight into the necessity of regula-tion is crucial, current discussions surrounding the merits and desirability of regulation, among policy makers, academics, and platform advocates, are conducted in a top-down fashion. What is often left out is the user perspective - a critical oversight if the purpose regulation is presented as resolving social concerns. In an attempt to resolve this omission, for the context of the sharing economy at least, we therefore examine user perceptions on regulatory desira-bility. In particular, we suggest that one of the most fundamental shapers of a user’s perspec-tive on regulation may be a user’s own experiences of the sharing economy, where a key fac-tor is the perceived fairness of the service. As such, we examine the impact of procedural, interpersonal, and informational fairness perceptions on regulatory desirability, in addition to other demographic and use-based antecedents. Based on a large-scale survey in 12 European countries, we find that procedural fairness has a positive effect on the desire for regulation, while interpersonal fairness has a negative effect. The findings are interpreted in light of the sharing economy, fairness, and regulation literature.