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Host type and pricing on Airbnb: Seasonality and perceived market power

Author

Listed:
  • Georges Casamatta

    (Università di Corsica)

  • Sauveur Giannoni

    (Università di Corsica)

  • Daniel Brunstein

    (Università di Corsica)

  • Johan Jouve

    (Università di Corsica
    Università di Corsica)

Abstract

The literature on short-term rental emphasises the heterogeneity of the hosts pop- ulation. Some argue that professional and opportunistic hosts differ in terms of their pricing strategy. This study highlights how differences in market perception and in- formation create a price differential between professional and non-professional players. Proposing an original and accurate definition of professional hosts, we rely on a large dataset of almost 9,000 properties and 73,000 observations to investigate the pricing behaviour of Airbnb sellers in Corsica (France). Using OLS and the double-machine learning methods, we demonstrate that a price differential exists between professional and opportunistic sellers. In addition, we assess the impact of seasonality in demand on the size and direction of this price differential. Professionals perceive a higher de- gree of market power than others during the peak season and it allows them to enhance their revenues.

Suggested Citation

  • Georges Casamatta & Sauveur Giannoni & Daniel Brunstein & Johan Jouve, 2021. "Host type and pricing on Airbnb: Seasonality and perceived market power," Working Papers 021, Laboratoire Lieux, Identités, eSpaces et Activités (LISA).
    • Handle: RePEc:lia:wpaper:021
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    File URL: https://umrlisa.univ-corse.fr/RePEc/lia/pdf/WorkingPaper21.pdf
    File Function: First version, 2021
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    Cited by:

    1. Emeka Ndaguba & Cina Van Zyl, 2023. "Professionalizing Sharing Platforms for Sustainable Growth in the Hospitality Sector: Insights Gained through Hierarchical Linear Modeling," Sustainability, MDPI, vol. 15(10), pages 1-24, May.

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