An Analysis On The Cause Of Sharing Economy From The Perspective Of Transaction Cost Theory

In recent years,sharing economy in China has developed rapidly.The model of sharing economy has infiltrated into many fields of social life,and has become the highlight of China's economic transformation in the new era.The Analysis on the Cause of Sharing Economy can broaden the research perspective of the sharing economic,and enrich the theory of sharing economy.Meanwhile,it can provide some enlightenment for government policy making and industry supervision.Based on transaction cost theory and comparative analysis method,this paper compares the resource allocation and transaction costs of the sharing economy model and the traditional economy model through theoretical analysis,mathematical model and empirical research,and analyses the reasons for the cause of the sharing economy.The firm and the market is two ways of resources allocation,and they can replace each other.Under the model of sharing economy,the market allocates the resources by price mechanism.Under the model of traditional economy,the firm allocates the resources by administrative order.When the transaction cost of market resource allocation is less than that of firm resource allocation,the market will replace the firm and become the main means of resource allocation.Therefore,the essence of the sharing economy model is the transformation of resource allocation.The motivation of the sharing economy development is that the market resource allocation can save more transaction cost.On the one hand,production factors are allocated and traded spontaneously under the influence of market mechanism.And it can get rid of the control of firms and save the establishment and operation costs of organizations.So the model of sharing economy can save the management transaction costs.On the other hand,the trading platform has a large amount of instant supply and demand information and a fast and effective evaluation system.It can not only ensure full competition in the market,but also restrain opportunistic behavior of both sides of the transaction.So the model of sharing economy can save the market transaction costs.