What is the value of being a superhost?
Berentsen, Aleksander; Rojas Breu, Mariana; Waller, Christopher (2019), What is the value of being a superhost?, 68th Annual meeting of the French Economic Association, 2019-06, Orléans, France
TypeCommunication / Conférence
Conference title68th Annual meeting of the French Economic Association
MetadataShow full item record
Department of Business and Economics - University of Basel
Rojas Breu, Mariana
Laboratoire d'Economie de Dauphine [LEDa]
Abstract (EN)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’ ifthey are a high quality seller. We show that new sellers charge a low price to attractbuyers and if they receive a star they post a high price. Furthermore, high qualitysellers sell with a higher probability than new sellers. We show that welfare is higherwith a ratings system. Using data on Airbnb rentals to compare the pricing decisionsof Superhosts (elite rentals) to non-Superhosts we show that Superhosts: 1) chargehigher prices, 2) have a higher occupancy rate and 3) higher revenue than non-Superhosts.
Subjects / KeywordsPrice Posting; Airbnb; Ratings; superhosts
Showing items related by title and author.