IS OPTIMIZING OR NON-OPTIMIZING OBJECTIVE OF A FIRM IN THE GIG ECONOMY? A CHRONOLOGICAL APPROACH

Abstract

In the gig economy, workers are managed by algorithmic management, where algorithms are being used to allocate, optimize, and evaluate workers. Due to this shift in the pattern, it is getting important to extract the objective of firms in the gig economy. The contribution of this study is twofold: first, the chronological review of previous studies conducted with the objective of a firm in economics. Second, the chronological review gives the direction to determine the objective of the firms in the gig economy. For, this purpose, the underline model presents in this study, which states that the objective of firms in the gig economy is to achieve an aspiration level for firms; on the contrary, traditional profit maximization and other optimization objectives. However, in the gig economy to achieve an aspiration level, firms set different goals that can be achieved with the coalition of firms with different specified economic players.