In this chapter we have discussed how markets work. Recently some new markets have emerged that focus on sharing of durable goods among a wider circle of users. Examples include Airbnb and Uber. The rise of these sharing markets may well have an impact on the relationship between the economy and the environment.

a. What are the market niches these firms have found? How is Airbnb different from Hilton? How is Uber different from Hertz or Yellow Cab? Is this a matter mainly of a different type of supply or is the demand side affected as well?

b. Why now? Markets for personal transportation and temporary housing have been around for a long time. How can these new companies find profitable opportunities in markets that have existed for some time? Is it evidence that the markets are not competitive? Or have the new opportunities been created by some changes in market conditions?

c. Are these new sharing markets likely on balance to be good for or harmful to the environment? Why?