
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
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Type
Communication / ConférenceDate
2019Conference title
68th Annual meeting of the French Economic AssociationConference date
2019-06Conference city
OrléansConference country
FrancePages
37
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Show full item recordAuthor(s)
Berentsen, AleksanderDepartment of Business and Economics - University of Basel
Rojas Breu, Mariana
Laboratoire d'Economie de Dauphine [LEDa]
Waller, Christopher
Deakin University
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 / Keywords
Price Posting; Airbnb; Ratings; superhostsRelated items
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Berentsen, Aleksander; Rojas Breu, Mariana; Waller, Christopher (2019-03) Communication / Conférence
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Berentsen, Aleksander; Rojas Breu, Mariana; Waller, Christopher (2019) Document de travail / Working paper
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