In this literature review, there is discussion of the shared economy, barter system, collaborative economy and the tenets of circular economy are considered as important variables. The gaps in the current technology, potential of the barter system and the inherent limitations that exist in the various business models are highlighted in this research schema.
As an inception step, the tenets of shared economy and its implications in the barter system have been detailed in the following.
Shared Economy and Barter system
Shared economy has been gaining prominence in the current times. It is observed that these nuanced processes have pervaded many of the systems that exist in the society. There are many implications that are observed in this schema.
Bartering is the system of interchange where the goods or services are exchanged for other goods or services. The notion of barter is a fluid model that is also dynamic. It can be essentially used in any of the business models (Knowles et al., 2014). This is the system where money is used in the place for exchange of goods and services. These kinds of exchanges can be bilateral or multilateral exchanges. These exist in the modern times as a parallel to the monetary crisis. This is used when the use of currency is particularly vulnerable. It had been replaced with the system of monetary exchange. This was owing to the limitation of the barter system (Knowles et al., 2014). In the current times, a renaissance of this barter system has been observed.
The barter is considered to be the factor that is used in the sharing economy. Sharing economy notion is not a relatively newer notion. It is a notion that has been present from the past to the current times. This is a business model that is used by the companies to make billions of dollars. It becomes common terms to hear about sharing economy (Knowles et al., 2014). These are used on a start-up company basis of the business model. The barter system has regained in the current times. It is considered to be more economical to purchase a service rather than use the barter system. This notion of barter system is basic. There are a number of limitations to this model (Knowles et al., 2014). A number of business ideas have emerged using the system of barter exchange. The development of the barter system is based on the consumption of the collaboration. This is used for a limited time (Arcidiacono, 2016). This is known as a Peer to Peer (P2P) system. In the modern times, the companies are found to facilitate reviews that enable both the parties to be privy of all the information. This is to ensure that there is transparency in the system. The newer emerging companies are known as collaborative economy. This is used as a mechanism to respond to the needs of the consumers. It is different from the traditional client-company (Arcidiacono, 2016). This is used to define the economics that are based on primitive trade that is fostered from the relationship-based person to person.
For example, Airbnb is considered to be the segment of the companies that are based on the exchange of reviews by the site travellers. They use the rent option to rent from different owners. The Airbnb has gained leverage in the communities owing to the ways in which they have been able to develop credibility in the service offerings (Arcidiacono, 2016). The emergence of sites like Task Rabitt enables the people to hire people for work from home to offices. This site was originally founded in 2008 and has more than 4000 published tasks. Sites such as Neighbourhood are used to lend items and goods to the people who require it for a limited time (Knowles et al., 2014). The use of a common portal enables in the using of shared assets. These lead to better development in the communities.