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In this chapter, a brief overview of the issues and the reason for undertaking the research has been explored. The tenets of shared economy, barter system and circular economy have been detailed below.
Shared economy is a euphemism that can be used in a variety of portals. It is a dynamic and fluid model that takes on numerous definitions and has many contextual meanings. This is used to describe a number of economic activities and modern day social activity tenets. It is a very fluid term that has multiple meanings and is imperative in determining the business model. The shared economy is considered to be a hybrid market model that has many elements that are incorporated into the business design. In this development of the shared economy model, there is the development of the industry and economy. The encompassing of many elements is evident in this process (Burton & Brown, 2014). It was initially assumed that the older system of exchange i.e. the barter system is obsolete. The advent of the shared economy tenets and the principles of the businesses have created a newer emerging model of bartering. However, these have given rise to the newer age barter system in this Internet age (Preston, 2012). This barter system is more to do with how exchange of goods using there are various business models and mediums. With the passage of time, there is the development of the industry and economy, along with this is the development of the bartering. The notions of bartering have extended beyond mere exchange of goods of equal value (Hamm, King & Stuckler, 2012). The tenets of intangible elements and the intricate associations are found to be embedded into the design. It is an important way in which the people communicate and conduct business with each other. In the past, the bartering was an economic model that was in the nascent stage. With the passage of time, the development of the industry and the economy and the appearance of money as formal exchange mechanism, the work of barter were moving from a relationship between people to a relationship person and company. The development of the industry allowed the production of the goods and replacing the traditional exchange massively. Recently, with the emergence of new technologies, the Internet, social networks and applications, idea of promoting companies and business models allow and facilitate collaboration among users (Andrews, 2015). The Internet of things has enabled the people to work with the people involved in the process directly. There are a number of elements that help the people to allow web services to share information. This has predominately given rise to a newer form of exchange and barter system. Nevertheless, it is observed that the current times there is an increase in the number of bartering system that exists in these places. This is owing to the limitations that exist in the system. These have been detailed below.