Platform marketplaces: unifying our understanding of lateral exchange markets

Purpose This research paper aims to provide conceptual clarity for marketplaces within the lateral exchange market framework. The advances in digital technologies have been critical to the growth of new marketplaces and forms of exchange. While there are many different names and manifestations of these marketplaces, the common thread is they all require digital platform intermediation. These marketplaces are referred to by a variety of names and characteristics, and a clear consensus has yet to be achieved. Design/methodology/approach This research uses a conceptual approach rooted in the marketing literature. Findings This study differentiates and defines the sharing economy, collaborative consumption and access-based consumption, as well as introduces the concept of liquid ownership – all under the LEM framework. Defining characteristics for each marketplace are noted to present a consistent classification of the focal concepts for the advancement of research and theory. Research limitations/implications As the number and types of lateral exchange marketplaces continue to grow, researchers need to have a clear delineation of the concepts. This research seeks to provide clarity on the disparate literature streams and introduces the concept of liquid ownership to allow for the advancement of research and theory surrounding these forms of consumption. Practical implications Understanding existing marketplaces is vital for online platforms as they develop new offerings and differentiate themselves in the marketplace. Additionally, opportunities for traditional businesses abound as they pursue new market opportunities and adapt to changing technologies. Thus, research questions concerning consumers and platform managers are presented. Originality/value This research contributes conceptual clarity on elements commonly associated with the sharing economy while expanding it to include elements found in LEMs. The concept of liquid ownership is also presented to reflect the evolving consumption landscape. Research opportunities and questions are provided to guide future scholarly work.