Code for: The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry

Principal Investigator(s):  View help for Principal Investigator(s) Chiara Farronato, Harvard Business School; Andrey Fradkin, Boston University

Version:  View help for Version V1

Name File Type Size Last Modified
0a.clean_instruments.do text/plain 27.4 KB 01/25/2022 08:55:AM
0b.create_master_data_group.do text/plain 10.2 KB 01/25/2022 07:22:AM
1.replicate_descriptives.R text/x-rsrc 20 KB 11/20/2021 05:06:AM
2a.replicate_create_instruments.R text/x-rsrc 2.2 KB 11/20/2021 05:06:AM
2b.replicate_final_jan_pyblp_newinst_sep.py text/x-python 27.1 KB 11/20/2021 05:06:AM
3a.replicate_post_demand_estimation.R text/x-rsrc 6.3 KB 11/20/2021 05:06:AM
3b.replicate_hotel_supply.R text/x-rsrc 8.3 KB 11/20/2021 05:06:AM
3c.replicate_airbnb_supply.R text/x-rsrc 4 KB 11/20/2021 05:06:AM
3d.replicate_prep_counterfactuals.R text/x-rsrc 3.8 KB 11/20/2021 05:06:AM
4a.replicate_counterfactuals.m text/x-objcsrc 4.3 KB 11/20/2021 05:07:AM

Project Citation: 

Farronato, Chiara, and Fradkin, Andrey. Code for: The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-05-25. https://doi.org/10.3886/E154841V1

Project Description

Summary:  View help for Summary This repository contains the code and data description for the paper "The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry". Some data is not available because it was obtained via proprietary relationships with companies. 

Abstract:
We study the welfare effects of enabling peer supply through Airbnb in the accommodation industry. We present a model of competition between flexible and dedicated sellers - peer hosts and hotels - who provide differentiated products. We estimate this model using data from major US cities and quantify the welfare effects of Airbnb on travelers, hosts, and hotels. The welfare gains are concentrated in locations (New York) and times (New Year’s) when hotels are capacity constrained. This occurs because peer hosts are responsive to market conditions, expand supply as hotels fill up, and keep hotel prices down as a result

Scope of Project

Subject Terms:  View help for Subject Terms Airbnb; Digital Platforms; Industrial organization
JEL Classification:  View help for JEL Classification
      D40 Market Structure, Pricing, and Design: General
      L10 Market Structure, Firm Strategy, and Market Performance: General
      L86 Information and Internet Services; Computer Software
Geographic Coverage:  View help for Geographic Coverage United states
Time Period(s):  View help for Time Period(s) 1/1/2011 – 12/31/2015
Collection Date(s):  View help for Collection Date(s) 1/1/2015 – 1/1/2021
Universe:  View help for Universe Guests to Airbnb listings in large US cities and Airbnb hosts in large US cities. Hotels in large US cities.  
Data Type(s):  View help for Data Type(s) program source code

Methodology

Data Source:  View help for Data Source There are several data sources:
- Proprietary Airbnb data.
- Purchased data from Smith Travel Research.
- Data for Sabre Travel Solutions.
- The American Community Survey.
- WRLURI and Saiz measures of housing markets.
- Google Trends data for search to hotels in the United States.

Unit(s) of Observation:  View help for Unit(s) of Observation City, accommodation type, date

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Published Versions

V1 [2022-05-25]

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