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The effects of facial attractiveness and trustworthiness in online peer-to-peer markets

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  • Jaeger, Bastian
  • Sleegers, Willem W.A.
  • Evans, Anthony M.
  • Stel, Mariëlle
  • van Beest, Ilja

Abstract

Online peer-to-peer markets, such as Airbnb, often include profile photos of sellers to reduce anonymity. Ert, Fleischer, and Magen (2016) found that more trustworthy-looking, but not more attractive-looking, Airbnb hosts from Stockholm charge higher prices for similar apartments. This suggests that people are willing to pay more for a night in an apartment if the host looks trustworthy. Here, we present a pre-registered replication testing how photo-based impressions of hosts’ attractiveness and trustworthiness influence rental prices. We extend previous investigations by (a) controlling for additional features related to price (e.g., the apartment’s location value), (b) testing for an influence of other host features, such as race and facial expression, and (c) analyzing a substantially larger sample of apartments. An analysis of 1,020 listings in New York City showed that more attractive-looking, but not more trustworthy-looking, hosts charge higher prices for their apartments. Compared to White hosts, Black (but not Asian) hosts charge lower prices for their apartments. Hosts who smile more intensely in their profile photo charge higher prices. Our results support the general conclusion that people rely on profile photos in online markets, though we find that attractiveness is more important than trustworthiness.

Suggested Citation

  • Jaeger, Bastian & Sleegers, Willem W.A. & Evans, Anthony M. & Stel, Mariëlle & van Beest, Ilja, 2019. "The effects of facial attractiveness and trustworthiness in online peer-to-peer markets," Journal of Economic Psychology, Elsevier, vol. 75(PA).
    • Handle: RePEc:eee:joepsy:v:75:y:2019:i:pa:s0167487018302794
    DOI: 10.1016/j.joep.2018.11.004
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    References listed on IDEAS

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    1. Hopfensitz, Astrid & Mantilla, César, 2023. "Smiles behind a mask are detectable and affect judgments of attractiveness, trustworthiness, and competence," Journal of Economic Psychology, Elsevier, vol. 98(C).
    2. Zhang, Ning & Fan, Xing & He, LiFeng & Cheng, Xin & Zhang, Liang & Liu, Rong, 2024. "The impact of the Seller's facial image on consumer purchase behavior in peer-to-peer accommodation platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    3. Hu, Xin & He, Liuyi & Liu, Junjun, 2022. "The power of beauty: Be your ideal self in online reviews—an empirical study based on face detection," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    4. Du, Ninghua & Song, Fei & Cadsby, C. Bram, 2022. "You cannot judge a book by its cover: Evidence from a laboratory experiment on recognizing generosity from facial information," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 100(C).
    5. Feng, Guo & Zhuo, Jiayi & Hou, Fangzhuo & Yan, Shuo, 2024. "Judging a book by its cover: Fund investors’ physical attractiveness stereotypes and investor behavior," Journal of Behavioral and Experimental Finance, Elsevier, vol. 42(C).
    6. Fazio, Andrea, 2022. "Attractiveness and preferences for redistribution," Economics & Human Biology, Elsevier, vol. 46(C).
    7. Kas, Judith, 2022. "The effect of online reputation systems on intergroup inequality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    8. Andrea Fazio, 2021. "Beautiful inequality: Are beautiful people more willing to redistribute?," Working Papers in Public Economics 194, Department of Economics and Law, Sapienza University of Roma.
    9. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    10. Li, Hengyun & Wang, Qian & Li, Gang & Cai, Danting, 2023. "Do looks matter for hosts on the peer-to-peer sharing accommodation market?," Annals of Tourism Research, Elsevier, vol. 98(C).
    11. Seigner, Benedikt David Christian & Milanov, Hana, 2023. "Mirror, mirror—A gendered lens on female entrepreneurs’ facial attractiveness in reward-based crowdfunding," Journal of Business Venturing Insights, Elsevier, vol. 20(C).

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