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Collaborative consumption encompasses the sharing economy. Collaborative consumption can be defined as the set of resource circulation systems, which enable consumers to both “obtain” and “provide”, temporarily or permanently, valuable resources or services through direct interaction with other consumers or through a mediator. Collaborative consumption is not new; it has always existed (e.g. in the form of flea markets, swap meets, garage sales, car boot sales, and second-hand shops).
The first detailed explanation of collaborative consumption in the modern era was contained in a paper from Marcus Felson and Joe L. Spaeth in 1978. It has regained a new impetus through information technology, especially Web 2.0, mobile technology and social media.
Collaborative consumption stands in sharp contrast with the notion of conventional consumption, as referred to as traditional consumption. Conventional consumption involves passive consumers who cannot or are not given the capacity to provide any resource or service. In contrast, collaborative consumption involves not mere “consumers” but “obtainers”, who do not only “obtain” but also “provide” resources to others (e.g. consumers, organizations, governments). Overall, consumers’ capacity to switch roles from “provider” to “obtainer” and from “obtainer” to “provider”, in a given resource distribution system, constitutes the key distinguishing criteria between conventional consumption and collaborative consumption.