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The Last Mile Matters: Impact of Dockless Bike Sharing on Subway Housing Price Premium

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  • Junhong Chu

    (Department of Marketing, National University of Singapore, Singapore 119245;)

  • Yige Duan

    (Vancouver School of Economics, Faculty of Arts, University of British Columbia, Vancouver V6T 1L4, British Columbia, Canada;)

  • Xianling Yang

    (Lianjia Research Institute, Kongbai (Beijing) Technology Company Limited, Beijing 100094, China)

  • Li Wang

    (Lianjia Research Institute, Kongbai (Beijing) Technology Company Limited, Beijing 100094, China)

Abstract

Dockless bike sharing provides a convenient and affordable means of transport for urban residents. It solves the “last-mile problem” in public transport by reducing the travel cost between home and subway stations and thus increasing the attractiveness of distant apartments. This may affect the relationship between housing price and distance to subway and reduce the price premium enjoyed by proximate apartments. Using resale apartment data in 10 major cities in China, a difference-in-differences approach at the apartment level, and a two-step estimator at the city-month level, we find that the entry of bike sharing reduces the housing price premium by 29% per km away from a subway station. The effect is equivalent to a reduction of 1,893–2,127 CNY (282–317 USD) in commuting costs per household per annum over 30 years. The effect is driven by a relative increase in the listing price of, and in the demand for, apartments distant from vis-à-vis proximate to subway stations.

Suggested Citation

  • Junhong Chu & Yige Duan & Xianling Yang & Li Wang, 2021. "The Last Mile Matters: Impact of Dockless Bike Sharing on Subway Housing Price Premium," Management Science, INFORMS, vol. 67(1), pages 297-316, January.
    • Handle: RePEc:inm:ormnsc:v:67:y:2021:i:1:p:297-316
    DOI: 10.1287/mnsc.2019.3550
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    3. Sangwan Lee, 2022. "An In-Depth Understanding of the Residential Property Value Premium of a Bikesharing Service in Portland, Oregon," Land, MDPI, vol. 11(9), pages 1-16, August.
    4. Lan, Hao & Moreira, Fernando & Zhao, Sheng, 2023. "Can a house resale restriction policy curb speculation? Evidence from a quasi-natural experiment in China," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 841-859.
    5. Zhan, Zilin & Guo, Yuanyuan & Noland, Robert B. & He, Sylvia Y. & Wang, Yacan, 2023. "Analysis of links between dockless bikeshare and metro trips in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
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    7. Huang, Sen & Liu, Kanglin & Zhang, Zhi-Hai, 2023. "Column-and-constraint-generation-based approach to a robust reverse logistic network design for bike sharing," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 90-118.
    8. Shr, Yau-Huo (Jimmy) & Yang, Feng-An & Chen, Yi-Syun, 2023. "The housing market impacts of bicycle-sharing systems," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    9. Zhao, Chunkai & Wang, Yuhang & Ge, Zhenyu, 2023. "Is digital finance environmentally friendly in China? Evidence from shared-bike trips," Transport Policy, Elsevier, vol. 138(C), pages 129-143.
    10. Guangyu Cao & Ginger Zhe Jin & Xi Weng & Li‐An Zhou, 2021. "Market‐expanding or Market‐stealing? Competition with network effects in bike‐sharing," RAND Journal of Economics, RAND Corporation, vol. 52(4), pages 778-814, December.
    11. Dong, Zhongpeng & Fan, Zhi-Ping & Wang, Ningning, 2023. "An analysis of pricing strategy for bike-sharing services: The role of the inconvenience cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    12. He, Xiaozhou & Wang, Qingyi, 2023. "A location-routing model for free-floating shared bike collection considering manual gathering and truck transportation," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    13. Li, Yang & Sun, Hao & Sun, Panfei & Hou, Dongshuang, 2023. "Inhibit violations in business-to-peer product sharing via heterogeneous punishment, firm decisions and subsidies," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1173-1187.
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    15. Dai Yao & Chuang Tang & Junhong Chu, 2023. "A Dynamic Model of Owner Acceptance in Peer-to-Peer Sharing Markets," Marketing Science, INFORMS, vol. 42(1), pages 166-188, January.

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