Tomorrow 3.0

With the growing popularity of apps such as Uber and Airbnb, there has been a keen interest in the rise of the sharing economy. Michael C. Munger brings these new trends in the economy down to earth by focusing on their relation to the fundamental economic concept of transaction costs. In doing so Munger brings a fresh perspective on the 'sharing economy' in clear and engaging writing that is accessible to both general and specialist readers. He shows how, for the first time, entrepreneurs can sell reductions in transaction costs, rather than reductions in the costs of the products themselves. He predicts that smartphones will be used to commodify excess capacity, and reaches the controversial conclusion that a basic income will be required as a consequence of this new 'transaction costs revolution'.

• Functions as the first explanation of the new 'sharing economy' using economic reasoning
• Written in an easily accessible style without any use of mathematical notation or advanced economics and without requiring previous background in transaction costs research
• Reviews prior work on entrepreneurship, and relates entrepreneurship to the new 'sharing economy' by identifying how profits can be created not by selling products, as in the past, but by selling reductions in transactions costs alone