Unravelling the gig economy: Towards a benchmark dynamic model

This article formulates and addresses the dynamics of an analytical model devised to explain the gig economy and its fundamental features. The gig economy, or platform economy, consubstantiates into the set of economic transactions for which the relation between the supplier and the customer is mediated by a digital platform. The mission of the platform is to collect and process data on consumers’ habits, preferences, and other relevant characteristics, and, then, to convey it to service providers. Acquiring data is costly for the service supplier, but it is pivotal in guaranteeing that the supplied product matches the needs and preferences of the customer. The proposed stylized model allows us to understand how the agents in the gig economy act and interact in a dynamic environment, and how they potentially benefit from this peculiar type of market design.