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Evolution of Traceability and Sharing Economies

No.1 Jiro Kokuryo


An analysis is offered on the relationship between traceability and sharing economy. Here, sharing economy is synonymous with "expansion of the right of use licensing (as opposed to ownership transfer) business model." Traceability is defined as "a state where the principle owner of property rights or product liability for some physical or intellectual property is able to continuously confirm the state of the property and who is using it." Under low traceability environments, businesses have no choice but to use the ownership sales-oriented business model. However, if advances in ICT realize high traceability environments, they will be able to adopt a model in which products are not sold and transferred, but in which only use rights are granted for a specified time in various form including rentals. Impact of barcodes and mobiles devices are analyzed to illustrate how traceability increased the level of sharing in supply chains.