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Platform economy: (dis-) embeddedness processes in urban spaces
1Department of Economic Geography, Julius-Maximilians-University Würzburg, Am Hubland, 97074 Würzburg, Germany.
Urban Transformations
|December 27, 2021
Summary
Digital platforms wield significant power, reshaping economies and cities. This study explores their lack of embeddedness due to unawareness, unaccountability, and non-transparency, advocating for future research on platform economy dynamics.
Area of Science:
- Socio-economics
- Urban Studies
- Digital Economy
Background:
- Digital platforms act as powerful multi-sided matchmakers influencing economic and urban organization.
- Their significant role in shaping society is contrasted by a rudimentary understanding of their embeddedness in social and societal systems.
Purpose of the Study:
- To evaluate (dis-)embedding processes in platform urbanism to understand platform power dynamics.
- To identify reasons for difficulties in pinpointing digital platform embeddedness.
- To propose future research directions for the (dis-)embeddedness of the platform economy.
Main Methods:
- Conceptual analysis of digital platform embeddedness.
- Examination of platform urbanism and its societal implications.
- Literature review to identify research gaps and propose future studies.
Main Results:
- Digital platforms exhibit a lack of embeddedness driven by unawareness, unaccountability, and non-transparency.
- This lack of embeddedness reinforces platform power through novel commodity creation, avoidance of labor protections, and operational secrecy.
- The concept of embeddedness is proposed as a crucial tool for analyzing the platform economy.
Conclusions:
- A deeper understanding of digital platform embeddedness is urgently needed.
- This understanding is vital for analyzing platform power and urban transformation.
- It will enable informed regulatory influence on the developing platform economy.
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