Professional Airbnb Hosts in Mexico City: A First Approximation

Juan José Merino (jmerino@colmex.mx) and Edwin Muñoz-Rodríguez (eamunoz@colmex.mx)
Additional contact information
Juan José Merino: El Colegio de México
Edwin Muñoz-Rodríguez: El Colegio de México

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: We offer a first approach to the demand and supply structure of Airbnb in Mexico City using a unique panel dataset of daily listings and rentals on the platform. We find descriptive evidence of a large sector of professional hosts. We estimate various models of demand accommodating price endogeneity and taste heterogeneity, as well as a supply model under the assumption of Bertrand-Nash's competition. We consistently find that professional hosts have lower marginal costs than nonprofessional hosts. We also find that overall price-cost margins are high regardless hosts' professionalization status, and slightly higher in the case of professional ones. Finally, motivated by a worldwide regulatory trend, we investigate counterfactually the effect of producer and consumer ad valorem taxes that discriminate between types of hosts.

Keywords: Sharing economy; structural econometrics; peer-to-peer markets; market structure; professionalization (search for similar items in EconPapers)
JEL-codes: C59 L11 L83 L86 Z31 (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cee.colmex.mx/dts/2024/DT-2024-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2024-01

Access Statistics for this paper

More papers in Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos Contact information at EDIRC.
Bibliographic data for series maintained by Ximena Varela (xvarela@colmex.mx).