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

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  • 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. Apostolos Filippas & John J. Horton & Richard J. Zeckhauser, 2020. "Owning, Using, and Renting: Some Simple Economics of the “Sharing Economy”," Management Science, INFORMS, vol. 66(9), pages 4152-4172, September.
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    6. 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.
    7. 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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    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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    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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