The impact of Airbnb: New evidence from Taiwanese hotels

Fang-chang Kuo () and Hsin-hsi Shih ()
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Fang-chang Kuo: National Chung Cheng University
Hsin-hsi Shih: Cathay Life Insurance

Economics Bulletin, 2022, vol. 42, issue 3, 1340 - 1348

Abstract: We investigate the impact of Airbnb on incumbent hotels in Taiwan. Different from previous studies, we propose a novel set of instrumental variables, which measure unused resources or capcities, to identify the causal impact. Compared to OLS estimates, IV-2SLS estimates indicate larger negative effects from Airbnb, suggesting potential biases resulted from endogeneity issues. Furthermore, smaller and lower quality hotels are heavily affected by Airbnb listings.

Keywords: Airbnb; hotel; competition; instrumental variable (search for similar items in EconPapers)
JEL-codes: L1 L8 (search for similar items in EconPapers)
Date: 2022-09-30
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