Marketplaces for Goods and Services: Trust, Branding, and Regulation

This course is the second course in the sequence of marketplaces for goods and services (the first course is STRAMGT 529). The course will dig deep into issues of building trust and marketplace branding, as well as regulatory challenges of online marketplaces. The first two thirds of the class will focus on the challenges these marketplaces face in developing trust and delivering high-quality service, as well as fighting with fraudulent activities on the platform. We will discuss marketplace design ideas that can improve trust and create a safe environment, and analyze the economics of rating systems. The rest of the class is focused on the economics of regulatory issues around marketplaces. We will review the theory of monopoly power and negative externalities, and apply them to online marketplaces. We will also discuss recent labor market regulatory developments around these platforms. Applications include ride-sharing and transportation; room-sharing and vacation rentals; dating; passion economy; food deliveries; and organized labor markets.