In the traditional modern economy there is a micro level in which individual makes specific purchase, production and sales decisions and conduct direct transactions with other individuals (Kirst-Ashman, 2014). There are also mezzo systems, which represents a more aggregated level of the system. The mezzo system shapes the micro level interactions through rules, channels and various forces which facilitate or impede exchange (Kirst-Ashman, 2014).
Rachel Botsman (2010) presents a new paradigm of collaborative consumption, such as that which is occurring in the sharing economy which is supported by new technology platforms that facilitate micro level exchanges. The mezzo level continues to be organizations, however that organization is largely determined and represented by a technological platform (Botsman, 2010). The macro level changes because the trade and the value which can be captured expands due to the increased efficiencies and potential.
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Mezzo systems have not disappeared due to the globalization of exchange, but they have changed the source of their structure and how they operate. In systems theory, everything is part of multiple levels at once (Singer, 1961). To that end, everything operates at the micro system. While through collaborative consumption we access everything individually and directly, the mezzo system continues to exist as the platform which facilitates that exchange, including Craigslist, freelance work sites, Airbnb, Uber, Lyft and thousands of others. These exchanges in the collaborative economy cannot be reduced to existing only on the micro system, participants continue to go through other systems to participate (Gyimóthy & Dredge, 2017).
In terms of systems theory, this global exchange would be defined as having more of a closed loop, because fewer resources are underutilized or lost to entropy. In the traditional economy a considerable amount of waste occurs because of individual ownership. Everyone must purchase their own item, which may be used infrequently, whereas in the collaborative economy only one of the item might be needed, which can be rented or shared among a group, ensuring more frequent use.
An example of a micro system addressed by Botsman would be the needs and resources of unwanted media. The individual has desires for media they do not have, and they have available media that they do not want. An example of a mezzo system addressed by Botsman is a system for matching needs and resources, such as Swaptree, an online platform. An explanation of a macro system addressed by Botsman is trust, and the psychological impacts and antecedents of trust. Trust is an important macrosystem which determines which networks are used by an individual and how.
Boundaries have not blurred, they have simply shifted and in this period of transition they appear blurred. Whereas previously the focus and source of boundaries was geography, that has been replaced by networks. In the past, most people were only aware of, and conducted transactions with, people who were proximal in location. Geography determined the networks of trade, and this fueled the trade voyages as it requires considerable travel to achieve this. Today people can conduct trade without concern regarding actual location, in that there is no need for proximity. People are not all directly connected to one another, they are connected through networks. These networks determine who does business with whom, and how that business is conducted (Barile, Lusch, Reynoso, Saviano, & Spohrer, 2016). A boundary which is becoming blurred is the idea of ownership and property, one which is ingrained in our culture and our economy (Belk, 2014). Ownership was operating at a higher level in the system to determine not only exchanges and transactions and how and why they would occur, but also the use and value of products and commodities. Everyone needed to have their own lawn mower, for example, rather than sharing a lawn mower since it is used infrequently.
