The rise of the sharing economy: estimating the impact of Airbnb on the hotel industry

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dc.contributor.authorZervas, Georgiosen_US
dc.contributor.authorProserpio, Davideen_US
dc.contributor.authorByers, John W.en_US
dc.date2016-11-01
dc.date.accessioned2020-04-23T15:16:37Z
dc.date.available2020-04-23T15:16:37Z
dc.date.issued2017-12
dc.date.online2017-12-01
dc.description.abstractPeer-to-peer markets, collectively known as the sharing economy, have emerged as alternative suppliers of goods and services traditionally provided by long-established industries. We explore the economic impact of the sharing economy on incumbent firms by studying the case of Airbnb, a prominent platform for short-term accommodations. We analyze Airbnb's entry into the state of Texas, and quantify its impact on the Texas hotel industry over the subsequent decade. We estimate that in Austin, where Airbnb supply is highest, the causal impact on hotel revenue is in the 8-10% range; moreover, the impact is non-uniform, with lower-priced hotels and those hotels not catering to business travelers being the most affected. The impact manifests itself primarily through less aggressive hotel room pricing, an impact that benefits all consumers, not just participants in the sharing economy. The price response is especially pronounced during periods of peak demand, such as SXSW, and is due to a differentiating feature of peer-to-peer platforms -- enabling instantaneous supply to scale to meet demand.en_US
dc.description.versionAccepted manuscripten_US
dc.format.extentpp. 687 - 705.en_US
dc.identifier.citationGeorgios Zervas, Davide Proserpio, John W. Byers. 2017. "The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry." Journal of Marketing Research, Volume 54, Issue 5, pp. 687 - 705. https://doi.org/10.2139/ssrn.2366898
dc.identifier.doi10.2139/ssrn.2366898
dc.identifier.issn0022-2437
dc.identifier.mycv359832
dc.identifier.urihttps://hdl.handle.net/2144/40311
dc.language.isoen_US
dc.publisherAmerican Marketing Associationen_US
dc.relation.ispartofJournal of Marketing Research
dc.subjectMarketingen_US
dc.subjectSharing economyen_US
dc.subjectAirbnben_US
dc.subjectHotelsen_US
dc.subjectCompetitionen_US
dc.subjectPeer-to-peer marketsen_US
dc.titleThe rise of the sharing economy: estimating the impact of Airbnb on the hotel industryen_US
dc.typeArticleen_US
pubs.elements-sourcemanual-entryen_US
pubs.notesEmbargo: Not knownen_US
pubs.organisational-groupBoston Universityen_US
pubs.organisational-groupBoston University, College of Arts & Sciencesen_US
pubs.organisational-groupBoston University, Questrom School of Businessen_US
pubs.organisational-groupBoston University, Questrom School of Business, Marketingen_US
pubs.publication-statusPublisheden_US
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