Economic and Business Dimensions: Unknowns of the Gig-Economy

Although gig-economy platforms like Uber, Postmates, and ThumbTack have captured the attention of policymakers and practitioners, research has only begun to tackle a $26 billion phenomenon that is estimated to grow dramatically in the coming years. Gig-economy platforms, defined as digital, service based, on-demand platforms that enable flexible work arrangements are a unique recent addition to the broader category of peer-to-peer platform business-models, which previously comprised intermediaries facilitating the exchange of tangible goods. Considering the critical implications for individuals, firms, and markets, people call for multidisciplinary research at each of these levels to both accelerate their understanding of the gig-economy, and to inform legislators of the potential benefits and pitfalls of the gig-economy (thereby facilitating the creation of effective policy). Perhaps the most intriguing and important questions relate to improvements in algorithm and market design. The volume of open questions in this space implies the presence of a substantial blind-spot for practitioners and policymakers alike.