Assessing Economic Value of Reducing Perceived Risk in the Sharing Economy: The Case of Ride-sharing Services
This study examines what types of perceived risks influence consumers’ and non-consumers’ willingness
to pay for ride-sharing services as a representative of the sharing economy. Choice experiment models are
constructed to capture consumers’ and non-consumers’ perceptions of the relative importance of each
service attribute reducing perceived risk. Results show individuals’ utility significantly increases when the
service does not require private information from consumers, provides a driver-tracking system, requires
a commercial driver’s license from drivers, offers a driver-review system, comprehensively compensates
for negative incidents, and guarantees a minimum wage and benefit plan for drivers. This research
contributes to a deeper understanding of the role of perceived risk in the sharing economy, and suggests
theoretical and practical implications that can assist companies and policy makers.