The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry

• 成果类型: Article
• 署名作者: Farronato, Chiara; Fradkin, Andrey
• 署名单位: Harvard University; Centre for Economic Policy Research - UK; National Bureau of Economic Research; Boston University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20180260
• 发表日期: 2022
• 页码: 1782-1817
• 关键词: products; MARKETS; search

摘要

We study the welfare effects of enabling peer supply through Airbnb in the accommodation industry. We present a model of competition between flexible and dedicated sellers (peer hosts and hotels) who provide differentiated products. We estimate this model using data from major US cities and quantify the welfare effects of Airbnb on travelers, hosts, and hotels. The welfare gains are concentrated in specific locations (New York) and times (New Year's Eve) when hotel capacity is constrained. This occurs because peer hosts are respon-sive to market conditions, expand supply as hotels fill up, and keep hotel prices down as a result. (JEL L11, L83, L86, L88, Z31)