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The Societal Impact of Sharing Economy Platform Self-Regulations—An Empirical Investigation

Author

Listed:
  • Wencui Han

    (Department of Business Administration, Gies College of Business, University of Illinois at Urbana–Champaign, Champaign, Illinois 61820)

  • Xunyi Wang

    (Department of Information Systems & Business Analytics, Hankamer School of Business, Baylor University, Waco, Texas 76798)

  • Mehmet Eren Ahsen

    (Department of Business Administration, Gies College of Business, University of Illinois at Urbana–Champaign, Champaign, Illinois 61820)

  • Sunil Wattal

    (Department of Management Information Systems, Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122)

Abstract

The rise of the sharing economy has disrupted traditional industries and has had many unforeseen societal impacts. This has sparked policy debates on whether and how the sharing economy should be regulated to promote the healthy growth of such markets. In this research, we examine the impact of platform self-regulations in the context of the home-sharing market. Using policy changes that reduce the number of Airbnb listings, we deploy a difference-in-difference approach to empirically test the impact of platform self-regulations on crime rate. Our results suggest that a reduction in Airbnb listings resulting from platform self-regulations leads to a reduction in crime. We further study the impact of these policy changes on different types of crime and find that these self-regulations lead to a reduction in incidents of crimes such as assault, robbery, and burglary but an increase in theft incidents. In addition, we use geographically weighted regression to investigate the heterogeneous effects of Airbnb occupancy on different types of neighborhoods, and we show that income, housing price, and population moderate the impact of the regulations. This research contributes to our understanding of the societal impacts of the sharing economy and the impact of platform self-regulation. Our findings also provide empirical evidence to inform policy making.

Suggested Citation

  • Wencui Han & Xunyi Wang & Mehmet Eren Ahsen & Sunil Wattal, 2022. "The Societal Impact of Sharing Economy Platform Self-Regulations—An Empirical Investigation," Information Systems Research, INFORMS, vol. 33(4), pages 1303-1323, December.
    • Handle: RePEc:inm:orisre:v:33:y:2022:i:4:p:1303-1323
    DOI: 10.1287/isre.2021.1044
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