The social currency of sharing economy: How monetary and nonmonetary interactions impact social capital

In three experiments and one quasi-experimental study, we investigate how monetary transactions in peer-to-peer sharing economy interactions affect social capital. We find that monetary transactions reduce willingness to help a neighbor compared to nonmonetary interactions. This effect is mediated by a diminished sense of communality (Study 1 and S1) and lower perceived closeness to the interaction partner (Studies 2 and 3). Study 2 suggests that the social effects of monetary transactions mirror those of situations wherein no prior contact has occurred. This finding implies that market pricing rules may reinforce the perception of the other person as a stranger. Quasi-experimental Study 3, conducted with Couchsurfing and Airbnb users, replicates these findings and extends them to another outcome—willingness to maintain social ties with the host. However, Study 3 also indicates that the negative impact of monetary transactions on social capital creation can be partially mitigated by personal contact, which fosters a greater sense of communality and closeness. These findings underscore the role of nonmonetary sharing economy interactions in fostering social connections. For sharing economy platform creators, integrating market-based transactions into their business models may pose challenges to community-building efforts. • Monetary deals change peer sharing interactions from communal to market-oriented • Nonmonetary interactions increase social capital, e.g., willingness to help • This effect is mediated by higher communality and interpersonal closeness • Market pricing keeps others as strangers, limiting the growth of social capital