Airbnb hosts hurt themselves out of spite to deter rival fans - the price of hate

#science #airbnb #football #realestate #economics

Airbnb hosts in college towns increase their listing prices much more than hotels when there are home football games against a rival team, according to a new study published in Real Estate Economics. The researchers found that hosts increase listing prices more during games with well-known rivals, compared to games with top-ranked, non-rivals. It is said that Airbnb hosts in college towns are individuals, not corporations, and are more susceptible to biases that lead to sub-optimal pricing. The research found that the hosts experience a 78 percent reduction in rental income by listing prices too high. In terms of the economic losses on home game weekends, the failure to obtain a booking results in an average of $662 loss. Interestingly, researchers also found that only upper-middle-class hosts are willing to take the financial hit out of spite during football season. This shows that animosity toward rival affiliations is a luxury that only upper-middle-class hosts can afford.

Reference
https://rady.ucsd.edu/faculty/directory/engelberg/pub/portfolios/AIRBNB.pdf

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