# Who Benefits from the "Sharing" Economy of Airbnb?

**Authors:** Giovanni Quattrone, Davide Proserpio, Daniele Quercia, Licia Capra, Mirco Musolesi  
**arXiv:** [1602.02238](https://arxiv.org/abs/1602.02238)  
**Date:** 2016-02-06  
**Summary page:** https://www.summarizepaper.com/en/paper/1602.02238v1/

## Key points

- Sharing economy platforms have transformed the way we travel, commute, and borrow
- Such companies are often poorly regulated despite their popularity among consumers
- Airbnb has faced criticism from regulators and policymakers for its lack of regulation
- Municipalities engage in a false dichotomy: some allow the business without imposing any regulation while others ban it altogether due to a lack of evidence upon which to draft policies
- Researchers propose gathering evidence from the web to determine where and when Airbnb listings are offered and match this information with census and hotel data to determine the socio-economic conditions of areas that benefit from the hospitality platform
- Traditional regulations have not been able to respond to changes in Airbnb demand and offering over time
- Areas with higher levels of deprivation tend to have more affordable listings on Airbnb compared to wealthier areas where prices are higher
- Algorithmic regulation can be used as an effective tool for regulating sharing economy platforms like Airbnb by providing real-time responses based on data analysis

## Summary

The rise of sharing economy platforms has transformed the way we travel, commute, and borrow. However, despite their popularity among consumers, such companies are often poorly regulated. Airbnb, one of the most successful examples of a sharing economy platform, has faced criticism from regulators and policymakers for its lack of regulation. While municipalities should regulate the emergence of Airbnb through evidence-based policy making, in practice they often engage in a false dichotomy: some allow the business without imposing any regulation while others ban it altogether due to a lack of evidence upon which to draft policies. To address this issue, researchers Giovanni Quattrone, Davide Proserpio, Daniele Quercia, Licia Capra and Mirco Musolesi propose gathering evidence from the web to determine where and when Airbnb listings are offered and match this information with census and hotel data to determine the socio-economic conditions of areas that benefit from the hospitality platform. Their analysis reveals that traditional regulations have not been able to respond to changes in Airbnb demand and offering over time. The authors' study provides insights into who benefits from Airbnb's services in London by analyzing data on listings alongside census and hotel data. The findings reveal that areas with higher levels of deprivation tend to have more affordable listings on Airbnb compared to wealthier areas where prices are higher. The study also highlights how traditional regulations have failed to keep up with changes in demand for Airbnb services over time. Overall, this research demonstrates how algorithmic regulation can be used as an effective tool for regulating sharing economy platforms like Airbnb by providing real-time responses based on data analysis rather than relying solely on traditional regulatory approaches that may not be responsive enough or flexible enough to adapt quickly enough as markets change over time.