What is the Collaborative Economy?

A collaborative economy is a type of economy where consumers rely on one another for the satisfaction of their needs. This means consumers are able to get what they need from one another. 

A collaborative economy is otherwise known as a peer-to-peer economy or a sharing economy.

How does a Collaborative Economy Work?

In a collaborative economy, a consumer who is in need of a product or service approaches another consumer who has it and is ready to release it and they collaborate to meet each others needs. 

What are the Key Aspects of a Market Economy? 

Crucial to a collaborative economy are activities like: 

• sharing, 
• trading, 
• swapping, 
• borrowing, and 
• lending of products between consumers. 

The sharing, swapping or renting is often done for a fee. 

What is the Role of a Middleman in a Collaborative Economy? 

The presence of middlemen in a collaborative economy is essential. They facilitate the exchange, distribution or sharing of goods between consumers. 

Why is the Collaborative Economy Decentralized? 

A collaborative economy uses a decentralized network that allows consumers to get what they need from other consumers in the market place. 

Related Topics

• Economics
• Scarcity in Economics 
• Division of Labor
• Microeconomics
• Macroeconomics
• Theory and Models 
• Traditional Economy
• Command Economy
• Centrally Planned Economy
• Market Economy
• Free Market Economy
• Collaborative Economy
• Private Enterprise
• Mixed Economy
• Underground Economy
• Black Economy
• Government Market Regulation
• Capitalism
• Conscious Capitalism
• Communism
• Centrally Planned Economy
• Socialism
• Marxism
• Egalitarianism
• Plutocracy
• Neoliberalism
• Underground Economy
• Black Economy
• Globalization
• Imports and Exports
• Gross Domestic Product
• Fiscal Policy
• Social Economics
• Positive Economics
• Mathematical Economics
• Constitutional Economics
• Labor Economics
• Organizational Economics
• Development Economics
• Behavioral Economics
• Environmental Economics
• Evolutionary Economics
• True-Cost Economics
• Managerical Economics
• Experimental Economics
• Welfare Econo