Research On The Mechanism Of Sharing Economy To Reduce Transaction Costs

Sharing economy develops rapidly over the world at present and becomes the new bright spot of economic growth after the financial crisis.The basic principle of sharing economy success is that people realize that economic resources are not infinite in the world,but idleness and waste are abundant including idle vehicles,housing,infrastructure,time,etc.Sharing economy relies on internet-based trading platform which combines a large number of idle resources together to meet the growing demand for goods and services.So it is no accident that the sharing economy is happening around the world.With the rapid development of internet technology,and the changes of living consumption ideas and business models change,sharing economy is currently becoming a new economic pattern in the fields of O2O(online to offline),internet industry and the whole Chinese economy under the new normal.First of all,in order to study the sharing economy and discuss the sharing economy to reduce the transaction costs,this article borrows from domestic and foreign academic experiences on sharing economic theory,and chooses to start from the theory of transaction costs to explain the decisive role of transaction cost advantages in sharing the formation of the economy.After that,the paper introduced the background of the rise of sharing economy(economic crisis),conditions(the popularity of smart phones)and the basis of reality(idle resources),and then explained the essential characteristics of the sharing economy.Then,from the perspective of the new institutional economics,it elaborates that sharing economy reduces the transaction costs between buyers and sellers,and then explains from the property rights theory and credit mechanism.Finally,the typical case Uber emerging under sharing economy illustrates the advantages of sharing economy compared to traditional taxis,it also aims to prove that sharing economy reduces transaction costs,and re-matches the idle resources of the society,points out the practical significance of sharing the economy.The article finally points out the limitations of the sharing economy in the development of our country and puts forward corresponding policy recommendations.In summary,the contributions of this research focus on that sharing economy makes disintermediation and intermediation through sharing platform,solves the problem of asymmetric information,reduces transaction costs between the buyer and the seller,and makes people no longer value the ownership of the goods and services,which makes people pay more attention to the use of them.Sharing economy also makes some difficult trading resources into trading to realize the best match and make most of the remaining resources in the whole society.Different from traditional economy,sharing economy does not require additional investment to stimulate economic growth and realizes reasonable redistribution of the social resources and then improves the operation efficiency of the society by optimizing the allocation between supply side and the demand side.Sharing economy is a profound economic change under the decentralized value transfer and the thinking way of cooperation and sharing becomes a trend in economic development.It brings huge changes in the resources reconfiguration,organization reconstruction and governance mode and even social relationship between supply and demand.It not only increases the economic efficiency of the whole society,but also promotes kinetic energy shift in China's economy.Sharing economy will make a positive impact on the adjustment of economic structure,and the transformation of economic growth mode,and reconstruction of connections between individual and individual,individual and business,merchants and business.It will also provide a new impetus for our country to build a more humane society.