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Platform Economics and Regulatory Change : a multiple-case study on Airbnb and Uber

HANNESSE, Megane
Master thesis
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https://hdl.handle.net/11250/2687937
Date
2020
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  • Master of Science [963]
Abstract
The significant growth of platform companies has disrupted, altered and threatened

our existing way of living and traditional industries. These platforms have fostered

many debates about their business model which are questioning the prevailing set

of institutions and regulatory frameworks. This thesis explores how platform

economics change regulations over time. More specifically, how through their work

and interactions with different actors, these platforms can change the existing

regulatory framework. The objective is to understand which activities are

undertaken by these companies to change regulations, their roles as well as the

conditions enabling these regulatory changes.

In this thesis, a framework is developed to explain and highlight the contributions

and work of platform companies to influence and change regulations over time. The

platforms’ impact is examined in a multiple-case study which focuses on two

platform companies, Airbnb and Uber, in three European cities; Berlin, London,

and Paris.

From this study, a four-stages model has been derived. The first stage refers to the

disruption brought by this new type of company in the economy. During this phase,

the platforms’ objective is to grow and harness a significant user base on which

they could rely on for the next phases. Moreover, this first phase is characterized

by a lack of understanding from the regulators who are not able to define this form

of new economy. The second stage is a phase of crisis during which platforms are

facing important regulatory issues and see their models jeopardized. This phase is

defined by a high level of institutional work in the case of a “political campaign”

undertaken by the platforms to lobby their interests. The third stage is a moment of

pacification in which platform companies are more inclined to self-regulate

themselves and to listen more carefully to both regulators and traditional providers.

This stage marks a shift in the strategy undertaken by the platforms where the focus

is now put on the regulators and traditional providers. The last phase is the

cooperation one since platforms are willing to partner with local authorities and

help them enforce the regulations. These four stages display a change in the

platforms’ strategy to change and influence regulations as well as a shift in their

roles towards regulators. The generalizability of this model is tested in a further

analysis on e-scooter sharing platforms which confirms the findings of this thesis.
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Masteroppgave(MSc) in Master of Business - Handelshøyskolen BI, 2020
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Handelshøyskolen BI

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