Internet$-$based services such as Airbnb and Uber have flourished over the last decade or so$.$ They

have allowed individual suppliers to provide their goods and services to consumers without a

large investment to actually start a business and without government regulations and control.

However, the success of these services depends on goodwill and mutual trust of both the

goods$/$service providers and consumers. For example, an Airbnb guest may trash the place or

damage or steal valuable furniture$/$appliances$,$ and an Airbnb host may cancel the reservation at

the last minute or have a filthy place despite posting a picture of an attractive, clean location on

the Airbnb website.

Questions

$1.$ How do these companies develop mutual trust between their users $($suppliers and

consumers$)?$ Name two or three ways.

$2.$ Which side is potentially more at risk in the deal?

$3.$ What is the effect of these services on regulated competitors such as hotels and taxi

companies?

$4.$ How would review of either side by the other side help with improving the operations?