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Sharing Competition: An Agent-Based Model for the Short-Term Accommodations Market

Author

Listed:
  • Bruno Bruna
  • Faggini Marisa

    (Department of Economics and Statistics, University of Salerno, via Giovanni Paolo II, Fisciano84084, Italy)

Abstract

This paper presents an agent-based model for the sharing economy, in the short-term accommodations market, where peers participating as suppliers and customers follow simple decision rules about sharing market participation, according to their heterogeneous characteristics. Simulations results show that, in the competition between the sharing economy and the traditional industry, low substitutability occurs between goods if consumers are differentiated in preferences. The main determinant for market performance in both sectors is the demand level, with minor influence of price setting and competition within and between markets.

Suggested Citation

  • Bruno Bruna & Faggini Marisa, 2020. "Sharing Competition: An Agent-Based Model for the Short-Term Accommodations Market," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(2), pages 1-13, April.
    • Handle: RePEc:bpj:bejeap:v:20:y:2020:i:2:p:13:n:6
    DOI: 10.1515/bejeap-2019-0231
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    References listed on IDEAS

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    1. Ert, Eyal & Fleischer, Aliza & Magen, Nathan, 2016. "Trust and reputation in the sharing economy: The role of personal photos in Airbnb," Tourism Management, Elsevier, vol. 55(C), pages 62-73.
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    3. Juho Hamari & Mimmi Sjöklint & Antti Ukkonen, 2016. "The sharing economy: Why people participate in collaborative consumption," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 67(9), pages 2047-2059, September.
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    5. Adrien Querbes, 2018. "Banned from the sharing economy: an agent-based model of a peer-to-peer marketplace for consumer goods and services," Journal of Evolutionary Economics, Springer, vol. 28(3), pages 633-665, August.
    6. Wegmann, Jake & Jiao, Junfeng, 2017. "Taming Airbnb: Toward guiding principles for local regulation of urban vacation rentals based on empirical results from five US cities," Land Use Policy, Elsevier, vol. 69(C), pages 494-501.
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    8. Bruna Bruno & Marisa Faggini, 2017. "Sharing Economy: For an Economic Taxonomy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(6), pages 174-178, June.
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    Cited by:

    1. Sainaghi, Ruggero & Baggio, Rodolfo, 2020. "Substitution threat between Airbnb and hotels: Myth or reality?," Annals of Tourism Research, Elsevier, vol. 83(C).
    2. Luigi Aldieri & Mohsen Brahmi & Bruna Bruno & Concetto Paolo Vinci, 2021. "Circular Economy Business Models: The Complementarities with Sharing Economy and Eco-Innovations Investments," Sustainability, MDPI, vol. 13(22), pages 1-13, November.

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    More about this item

    Keywords

    sharing economy; agent-based models; peer-to-peer markets;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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