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Regulating short-term rental platforms: where, how and in the interest of whom?

Author

Listed:
  • Sauveur Giannoni

    (LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique)

  • Dominique Torre

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Malgorzata Ogonowska

    (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis)

Abstract

This paper analyzes the impact of short-term rental platforms on the housing market and tourism industry. We develop a theoretical model to explore the effects of platform entry on different segments of the housing market and tourism industry, depending on the attractiveness of a destination and the socio-economic composition of its population. We show that in highly attractive destinations, quantitative restrictions on short-term rentals are effective in protecting students and low-income tenants from being crowded out of the rental market. However, in destinations with strong seasonality, taxation may be a better solution to mitigate the negative effects of the platform. On the other hand, in less attractive destinations, quantitative restrictions are less effective, and taxation can provide a better solution to protect hoteliers and middle-class families. Our results provide policymakers with effective guidelines to regulate short-term rental platforms and their impacts on different segments of the housing market and tourism industry.

Suggested Citation

  • Sauveur Giannoni & Dominique Torre & Malgorzata Ogonowska, 2023. "Regulating short-term rental platforms: where, how and in the interest of whom?," Working Papers hal-04266599, HAL.
    • Handle: RePEc:hal:wpaper:hal-04266599
    as

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