The Heart and Wallet Paradox of Collaborative Consumption

Abstract: Collaborative consumption is a peer-to-peer (P2P) exchange of goods and services facilitated by online platforms. This phenomenon is driven by technologies that make it easier and cheaper to redistribute and share the use of existing but underutilized private resources. It is embedded in the paradigm shift in society towards access-based consumption, in opposition to acquisition and private individual ownership. Firms take on the new role of enabler of collaborative consumption by developing online platforms and smartphone apps that facilitate P2P exchanges between people in their roles of peer providers and consumers.Collaborative consumption is anchored to two opposite logics of consumption: sharing and market exchange. This results in the Heart & Wallet paradox with its tensions between a pro-social orientation and communal norms on the one hand, and a for-profit orientation and market norms on the other hand. While diverse societal and regulatory aspects of the so-called “sharing economy” are discussed in popular debate, scholars have yet to catch up on the theoretical implications from these influences on business activities and consumer behavior.This thesis aims to improve the understanding of collaborative consumption by contributing to the conceptualization of this new phenomenon as intertwined with coexisting sharing and market logics. The research is based on two papers taking the perspective of the firms operating online platforms that facilitate collaborative consumption, and two papers taking the perspective of the peer providers and consumers participating in P2P exchanges. The context of shared mobility (i.e. P2P car rental, ridesharing) is explored through three cases, using interviews with online platform managers and participants in collaborative consumption, participant observation, a netnography, a cross-sectional survey of platform users, and document analyses.This thesis situates collaborative consumption in the access paradigm, based on the temporal redistribution and monetization of private resources facilitated via online platforms, while nurturing the feelings of communal belonging and the sharing ethos embedded in P2P exchanges. Investigating the tensions of the Heart & Wallet paradox of collaborative consumption, I highlight the opposing rationales between the sharing logic of the original nonmonetary practices initiated by grassroots communities and the market logic of platform business models. I further emphasize the key function of communal identification for participants and the role of perceived sharing authenticity—the pitfalls of sharewashing for firms. This thesis contributes to service research by advancing the understanding of P2P exchanges and the conceptualization of collaborative consumption.