Consumers' demand for operational licencing: evidence from Airbnb in Paris

David Boto-García, Roberto Balado-Naves, Matías Mayor and José Francisco Baños-Pino

Annals of Tourism Research, 2023, vol. 100, issue C

Abstract: Since July 2021, Airbnb discloses whether listings in Paris hold a mandatory registration number to legally operate. Grounded on information asymmetries and moral hazard theories, this paper studies consumers' preferences for certifications of legality and minimum quality standards. We exploit the staggered disclosure of licences over time to evaluate the change in demand (reviews) compared to those that continue offering their properties without the licence. Event study and difference-in-differences estimates indicate that reviews for registered hosts increased by around 10 % relative to illegal operators. The effects are increasing over time as the licence becomes more salient to consumers. Our findings suggest that the disclosure of hosts' legal status is an effective mechanism to improve the enforcement of peer-to-peer markets regulation.

Keywords: Operational licencing; Peer-to-peer markets; Airbnb regulation; Policy evaluation (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:100:y:2023:i:c:s0160738323000397

DOI: 10.1016/j.annals.2023.103566

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