[Paper Review] Cooperation in the Gig Economy: Insights from Upwork Freelancers

Zachary Fulker, Christoph Riedl|arXiv (Cornell University)|Jan 20, 2023

Sharing Economy and PlatformsBusiness, Management and Accounting3 citations

TL;DR

This study investigates cooperation among Upwork freelancers using a survey of 122 freelancers and an incentivized social dilemma experiment. It finds a high cooperation rate (85%), driven by ingroup bias and shared expectations, challenging the view of freelancers as isolated market actors and highlighting the role of collective culture and accountability in gig work.

ABSTRACT

Existing literature predominantly focuses on how freelancers individually complete tasks and projects. Our study examines freelancers' willingness to work collaboratively. We report results from a survey of 122 freelancers on a leading online labor market platform (Upwork) and examine freelancers' preferences for collaboration and explore several antecedents of cooperative behaviors. We then test if actual cooperative behavior matches with freelancers' stated preferences through an incentivized social dilemma experiment. We find that respondents cooperate at a higher rate (85%) than reported in previous comparable studies (between 50-75%). This high rate of cooperation may be explained by an ingroup bias. Using a sequential mediation model we demonstrate the importance of a sense of shared expectations and accountability for cooperation. We contribute to a better understanding of the potential for collaborative work on online labor market platforms by assessing if and what social factors and collective culture exist among freelancers. We discuss the implications of our results for platform designers by highlighting the importance of platform features that promote shared expectations and improve accountability. Overall, contrary to existing literature and predictions, our results suggest that freelancers in our sample display traits that are more consistent with belonging to a coherent group with a shared collective culture, rather than being anonymous actors in a transaction-based market.

Motivation & Objective

• To examine freelancers' willingness to collaborate on online labor platforms.
• To identify antecedents of cooperative behavior among freelancers on Upwork.
• To test the alignment between stated preferences and actual cooperative behavior in a controlled experiment.
• To assess whether freelancers exhibit collective culture and shared expectations, challenging the notion of them as anonymous market participants.
• To inform platform design by identifying features that enhance cooperation and accountability.

Proposed method

• A survey of 122 Upwork freelancers to assess preferences for collaboration and social factors influencing cooperation.
• An incentivized social dilemma experiment to measure actual cooperative behavior under financial incentives.
• A sequential mediation model to analyze the role of shared expectations and accountability in driving cooperation.
• Use of survey and experimental data to test hypotheses about ingroup bias and collective identity.
• Statistical analysis of cooperation rates and mediating effects using structural equation modeling.
• Comparison of self-reported preferences with observed behavior in a controlled economic setting.

Experimental results

Research questions

• RQ1 What factors influence freelancers' willingness to cooperate on online labor platforms?
• RQ2 To what extent do freelancers' stated preferences for collaboration align with their actual behavior in a cooperative setting?
• RQ3 How do shared expectations and accountability mediate the relationship between social factors and cooperative behavior?
• RQ4 To what extent is ingroup bias a driver of cooperation among freelancers?
• RQ5 Do freelancers on Upwork exhibit characteristics of a collective culture rather than acting as isolated market agents?

Key findings

• Freelancers cooperated at a rate of 85% in the incentivized experiment, significantly higher than the 50–75% range reported in prior comparable studies.
• Ingroup bias was identified as a key driver of cooperation, suggesting that freelancers are more likely to collaborate with those they perceive as part of a shared community.
• A sequential mediation model confirmed that shared expectations and accountability are significant mediators in promoting cooperative behavior.
• The study found that freelancers' actual cooperation rates exceeded their self-reported preferences, indicating a gap between intention and behavior that is resolved through social norms.
• Contrary to the dominant view of freelancers as anonymous, transactional actors, the results suggest they operate within a coherent group with a shared collective culture.
• Platform features that enhance shared expectations and accountability are critical for fostering sustainable cooperation in gig work ecosystems.