Peer reviews trump regulators in building sharing economy trust
A new study of 635 consumers finds that platform ratings and peer pressure drive participation in the sharing economy far more than government oversight. The finding challenges policymakers and platforms to rethink trust-building strategies, suggesting that light-touch regulation paired with strong reputation systems may be more effective than heavy-handed rules.
Originaltitel: The influence of institutional mechanisms when trusting the sharing economy
<p><strong>Purpose:</strong> This study examines whether trust in the sharing economy (SE) is driven more by decentralised, peer-based mechanisms (normative or cultural-cognitive institutions) or centralised regulatory authority.</p><p><strong>Design/methodology/approach:</strong> Structural equation modelling was performed to test a multi-level trust model using data from 635 respondents exposed to a between-subjects experimental vignette online survey.</p><p><strong>Findings/results:</strong> The mechanisms of peer pressure, micro-level platform reputation, and meso-level platform brand assurance are the primary drivers of consumer trust and participation intention. The authority of macro-level independent regulation plays a significantly weaker role. The collective judgement of peers holds more sway for consumers than the oversight of formal authorities in establishing SE legitimacy.</p><p><strong>Practical implications:</strong> Service providers must prioritise curating excellent platform reputations, as high peer ratings are a de facto market requirement. Platforms should strengthen their brand’s perceived reliability. Policymakers should adopt a nuanced regulatory approach, recognising that traditional top-down assurances are less influential than decentralised, social proof mechanisms for legitimising most SE services.</p><p><strong>Originality/value:</strong> This is one of the first studies to integrate and contrast trust-building institutions across micro-, meso- and macro-levels within a single SE framework. It provides empirical evidence that normative and cultural-cognitive institutions are more effective than regulatory ones in legitimising the SE, highlighting a pivotal shift in how trust is established in digital, peer-to-peer markets.</p>