Freelancers in E-markets: A Role of Social Ties

Abstract

The study deals with e-markets for self-employed professionals (freelancers). These highly competitive markets emerge in a still weakly regulated cyberspace with virtual interactions. However, market ties between freelancers and their clients are not established as arm’s-length but largely as embedded ties. Social capital of freelancers becomes an effective instrument for fi nding the clients, raising earned income and reducing the moral hazards of opportunism. Empirical data are collected from an online standardized survey of more than 8 thousand freelancers, conducted by the authors in December 2008 at Free-lance.ru.