Collaborative Economy (Advantages And Disadvantages)

Category: Economics

The Collaborative Economy is a form of exchange between at least two parts basically. One that has something and another that needs that something. The principle is that by avoiding the use of money, both parties obtain a benefit.

One of the parties can get that something they need, in exchange for a good or service that is useful to the party that is giving their property. That is, it is a transaction in which a good is not exchanged for money, but for another good or a service.

Esyte is a principle based on mutual collaboration, on voluntary help between the two parties and where each of them is fully satisfied with the exchange they have made.

It is a very simple and simple way to solve problems without making use of money, it only requires the existence of a need and compensation that is beneficial to the parties, which is always agreed by mutual agreement.

In general, the goods that are traded have not been used for some time or are not so necessary by the owner and may transfer them in exchange for another good or a service that has more value for it.

That is why the activities of a collaborative economy are of great benefit to those who apply them, since a part obtains the good that it needs, while the owner when giving it, also obtains a remuneration for it, both of them gain in the exchange, It is a win-win situation.

Advantages and Disadvantages of the Collaborative Economy

Some of the benefits that this type of exchange seeks to carry out are:

  • Stimulation of Second Use and Recycling : this also favors moderate consumption and sustainable development.
  • Optimize Resource Management : if a good is useful to one party, it is possible that it can also be useful to others, in this case you can share its use and receive something from them in the form of retribution.
  • Environmental Care : its ability to promote second use, recycling, as well as reduce waste and garbage, favor maintaining the environment and the environment.
  • Savings for the parties involved.

However, despite its great benefits, the collaborative economy may also have the following disadvantages:

  • There is no legal regulation that controls this type of exchange, there is no law that protects the parties.
  • Unfair exchanges.
  • Possibility of fraud and scam.
  • Deceptive exchanges

Conclusion

In recent years, new technologies, internet included, have been part of the driving engines of the collaborative economy model. In addition, it has favored this type of exchange between people from any part of the world.

This is stated as it is feasible that the part that needs the good and the part that can change it for another good or service, can agree on the terms of their online exchange and also, fulfill it quickly and safely.

This economic model based on collaboration and the satisfaction of a need, but not on the economic benefit. It gains greater boom day by day, not only from a particular point of view among people, but also between companies.

This case is interesting, since when two companies agree to make a collaborative exchange, they save a lot of money. As for example: taxes or bank commissions.

An example of this could be the exchange of a party to celebrate the anniversary of a uniform factory, for the uniforms of all personnel and the linens of a celebration agency.

In itself the concept of collaborative economics seems to be very simple, however it is much more beneficial and comprehensive than it may initially seem.