Code for: The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry

This repository contains the code and data description for the paper "The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry". Some data is not available because it was obtained via proprietary relationships with companies. <br><br>Abstract:<br>We study the welfare effects of enabling peer supply through Airbnb in the accommodation industry. We present a model of competition between flexible and dedicated sellers - peer hosts and hotels - who provide differentiated products. We estimate this model using data from major US cities and quantify the welfare effects of Airbnb on travelers, hosts, and hotels. The welfare gains are concentrated in locations (New York) and times (New Year’s) when hotels are capacity constrained. This occurs because peer hosts are responsive to market conditions, expand supply as hotels fill up, and keep hotel prices down as a result<br>