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Professional Airbnb Hosts in Mexico City: A First Approximation

Author

Listed:
  • Juan José Merino

    (El Colegio de México)

  • Edwin Muñoz-Rodríguez

    (El Colegio de México)

Abstract

We offer a first approach to the demand and supply structure of Airbnb in Mexico City using a unique panel dataset of daily listings and rentals on the platform. We find descriptive evidence of a large sector of professional hosts. We estimate various models of demand accommodating price endogeneity and taste heterogeneity, as well as a supply model under the assumption of Bertrand-Nash's competition. We consistently find that professional hosts have lower marginal costs than nonprofessional hosts. We also find that overall price-cost margins are high regardless hosts' professionalization status, and slightly higher in the case of professional ones. Finally, motivated by a worldwide regulatory trend, we investigate counterfactually the effect of producer and consumer ad valorem taxes that discriminate between types of hosts.

Suggested Citation

  • Juan José Merino & Edwin Muñoz-Rodríguez, 2024. "Professional Airbnb Hosts in Mexico City: A First Approximation," Serie documentos de trabajo del Centro de Estudios Económicos 2024-01, El Colegio de México, Centro de Estudios Económicos.
    • Handle: RePEc:emx:ceedoc:2024-01
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    File URL: https://cee.colmex.mx/dts/2024/DT-2024-1.pdf
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    More about this item

    Keywords

    Sharing economy; structural econometrics; peer-to-peer markets; market structure; professionalization;
    All these keywords.

    JEL classification:

    • C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • Z31 - Other Special Topics - - Tourism Economics - - - Industry Studies

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