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Abstract

This study addresses two research questions: (1) Does agglomeration benefit home-sharing business? and (2) How host capacity and host experience moderate such agglomeration effect? A series of econometric analyses using large-scale data of Airbnb in New York City were employed. The findings suggest a positive agglomeration effect on a room-sharing listing’s performance. Such effect is mitigated as host capacity increases but remains strengthened as host experience expands. Theoretical and practical implications are highlighted.

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