Abstract
As the sharing economy has grown, externalities, i.e., “dark sides,” have also surfaced. The intricacies surrounding these externalities and their regulatory measures have garnered significant scholarly interest; however, there remains a lack of comprehensive guidance on the appropriate regulatory approaches. Based on a systematic literature review of 99 papers, we provide an overview of two regulatory approaches (government and self-regulation) to address the sharing economy’s economic, social, and environmental externalities affecting multiple stakeholders. We show that government regulation entails mechanisms based on avoiding, limiting, and guiding, while self-regulation entails mechanisms related to market entry, operation, and monitoring. We develop an externalities-based regulatory framework to suggest how these two approaches and recommended regulatory mechanisms could address each externality. Furthermore, we use our regulatory framework as a base to suggest a future research agenda and to discuss managerial implications.