Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, January 8, 2019

Platform, Anonymity, and Illegal Actors: Evidence of Whac-a-Mole Enforcement From Airbnb

Jian Jia, Illinois Institute of Technology - Stuart School of Business and Liad Wagman, Illinois Institute of Technology - Stuart School of Business, IIT have written on Platform, Anonymity, and Illegal Actors: Evidence of Whac-a-Mole Enforcement From Airbnb.

ABSTRACT: Airbnb, a prominent sharing-economy platform, offers dwellings for short-term rent. Despite restrictions, some sellers illegally offer their accommodations, taking advantage of a degree of anonymity proffered by the platform to hide from potential enforcement. We study the extent to which enforcement works in Manhattan, one of the most active short-term rental markets, by testing the effects of two recent enforcement events. We demonstrate that prices of entire-home listings in Manhattan increase and vacancies decrease following each enforcement event, suggesting that illegal entire-home listings are being withdrawn from the market, with these effects varying depending on neighborhood characteristics. We further demonstrate that a significant portion of withdrawn listings re-enter the market under the less-enforced listing category of private rooms.

https://lawprofessors.typepad.com/antitrustprof_blog/2019/01/platform-anonymity-and-illegal-actors-evidence-of-whac-a-mole-enforcement-from-airbnb.html

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