Dear Guests, Please Pay for my License – Analyzing the Heterogenous Cost-Pass-Through of Commercial and Non-Commercial Rental Suppliers in Response to Regulatory Policies

dc.contributor.author Müller, Michelle
dc.contributor.author Neumann, Jürgen
dc.contributor.author Kundisch, Dennis
dc.date.accessioned 2021-12-24T18:24:30Z
dc.date.available 2021-12-24T18:24:30Z
dc.date.issued 2022-01-04
dc.description.abstract Peer-to-peer rental markets have been shown to adversely impact the traditional hospitality industry and housing affordability, fueling the demand for regulation. While localities have implemented policies to address these issues, little is known about how rental suppliers respond to those regulations. Analyzing a policy implemented in New Orleans, which introduced annual bring-to-market costs while simultaneously banning listings from one city-center neighborhood, we reveal that hosts increase their prices as a result of the policy. We show that non-commercial hosts completely pass their additional costs onto their consumers. By contrast, commercial hosts with legalized listings located in the city center only partially pass on their costs to their guests, while decreasing prices in the rest of the city. Our results indicate that the policy falls short of reducing pressure on housing affordability in the city center, as peer-to-peer renting remains attractive when bring-to-market costs can easily be passed through to consumers.
dc.format.extent 10 pages
dc.identifier.doi 10.24251/HICSS.2022.850
dc.identifier.isbn 978-0-9981331-5-7
dc.identifier.uri http://hdl.handle.net/10125/80191
dc.language.iso eng
dc.relation.ispartof Proceedings of the 55th Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject Strategy, Information, Technology, Economics, and Society (SITES)
dc.subject difference-in-differences
dc.subject host types
dc.subject peer-to-peer rental markets
dc.subject price setting
dc.subject short-term rental regulation
dc.title Dear Guests, Please Pay for my License – Analyzing the Heterogenous Cost-Pass-Through of Commercial and Non-Commercial Rental Suppliers in Response to Regulatory Policies
dc.type.dcmi text
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