What is the value of being a superhost?

Aleksander Berentsen, Mariana Rojas Breu () and Christopher Waller
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Mariana Rojas Breu: LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres
Christopher Waller: Deakin University [Burwood]
Authors registered in the RePEc Author Service: Mariana Rojas-Breu

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Abstract: We construct a search model where sellers post prices and produce goods of unknown quality. A match between a buyer and a seller reveals the quality of the seller. We look at the pricing decisions of the sellers in this environment. We then introduce a rating system whereby buyers reveal the seller's type by giving them a "star" if they are a high quality seller. We show that new sellers charge a low price to attract buyers and if they receive a star they post a high price. Furthermore, high quality sellers sell with a higher probability than new sellers. We show that welfare is higher with a ratings system. Using data on Airbnb rentals to compare the pricing decisions of Superhosts (elite rentals) to non-Superhosts we show that Superhosts: 1) charge higher prices, 2) have a higher occupancy rate and 3) higher revenue than non-Super hosts.

Keywords: superhosts (search for similar items in EconPapers)
Date: 2019-03
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Published in Séminaire de recherche Laboratoire d'Economie d'Orléans, Mar 2019, Orléans, France

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Related works:
Working Paper: What is the Value of Being a Superhost? (2019)
Working Paper: What is the value of being a superhost? (2019)
Working Paper: What is the value of being a superhost ? (2019)
Working Paper: What is the value of being a superhost? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02315530

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