Upward trajectory of the sharing economy & policy reaction

Abstract

The purpose of this study is to provide implications on policy preparation and amendments on laws and regulations in accommodation sharing in Korea by exploring the current status of demand and supply sides. This study consists of four parts to investigate i) perceived characteristics of accommodation sharing, ii) the impact of attributes of accommodations sharing on business performance, iii) individuals’ perceptions of policy reactions, and iv) exploratory research of current laws and regulations of different countries. First, this study finds that actual preferences of accommodation sharing conflicts with the issues on laws and regulations regarding property and sharing types. Guests who prefer to share entire houses consider instrumental attributes related to properties, while guests who prefer a portion of the house consider relatively more about social interactions, sustainability, and community benefit. Sharing a portion of the houses is legal and more suitable for policy intentions because the policies promote the local economy and community recovery by maximizing the utility of resources and interactions with the community. Further, this study finds that individuals with experience of accommodation sharing tend to have more positive attitudes toward accommodation sharing and perceive more necessity of policy reactions. Among proposed policy instruments, individuals perceive local ordinances, government publicizing and campaign, trust marks, taxation, penalties, and government controls are effective to build trust in accommodation sharing. Individuals evaluate that policies geared toward the majority of the public are more effective, and governments should establish a strategic approach as to which policies are introduced in public and which role the government plays in the departments. Currently, governments have been required the incompatible roles of eliminating regulatory barriers for newly introduced sharing economy business and minimizing the damages to existing industries. This study provides policy and managerial implications what is the most important for the citizen satisfaction associated with proper preparations and amendments of laws and regulations.