The Tragedy of Your Upstairs Neighbors: Is the Airbnb Negative Externality Internalized?

John Horton

Papers from arXiv.org

Abstract: A commonly expressed concern about the rise of the peer-to-peer rental market Airbnb is that hosts---those renting out their properties---impose costs on their unwitting neighbors. I consider the question of whether apartment building owners will, in a competitive rental market, set a building-specific Airbnb hosting policy that is socially efficient. I find that if tenants can sort across apartments based on the owners policy then the equilibrium fraction of buildings allowing Airbnb listing would be socially efficient.

Date: 2015-12
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (3)

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