Antirival goods, network effects and the sharing economy

Abstract

This paper introduces the concept of antirival goods as distinct from both rival and nonrival goods. Olleros argues that antirival goods are characterized by increasing returns to shared use, making them particularly relevant for understanding network effects and sharing economy platforms.

Key Findings

• Orthogonal Classification: Antirival goods represent a separate dimension from the traditional rival/nonrival classification, not a point on the same continuum.
• Increasing Returns: The value of antirival goods increases with the number of users, creating positive network effects.
• Sharing Economy Relevance: Many sharing economy platforms exhibit antirival characteristics where more participants increase value for all.

Theoretical Contributions

The paper provides a theoretical framework for understanding goods that become more valuable as they are shared, challenging traditional economic classifications of goods based solely on rivalry and excludability.

Implications for Co-goods

This theoretical foundation is crucial for understanding how co-created physical products might exhibit network effects and increasing returns to adoption, particularly when embedded with digital components or part of networked systems.

Citation

Olleros, F. Xavier (2018). "Antirival goods, network effects and the sharing economy." First Monday, 23(2). DOI: http://dx.doi.org/10.5210/fm.v23i2.8161

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