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Regulation strictness and supply in the platform economy: the case of Airbnb and Couchsurfing

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  • Bilgehan Uzunca
  • Andrea Borlenghi

Abstract

To what extent is regulation associated with supply in the platform economy (PE)? We address this research question by analyzing the relationship between the strictness of rules/laws in 59 U.S. cities and the number of short-stay accommodation offerings. We find that the stricter regulation is, the higher the supply in these platforms. We also investigate how the presence (or lack thereof) of money transactions in the platform affects this relationship. We discover that the presence of money transactions in these platforms negatively moderates the positive relationship between regulation strictness and the supply of short-stay accommodations. This paper contributes to the literature by investigating how aggregate supply in the PE is affected by legal uncertainties, thereby joining the debate on how digital platforms are reforming labor practices in major parts of the economy and industrial value chains.

Suggested Citation

  • Bilgehan Uzunca & Andrea Borlenghi, 2019. "Regulation strictness and supply in the platform economy: the case of Airbnb and Couchsurfing," Industry and Innovation, Taylor & Francis Journals, vol. 26(8), pages 920-942, September.
    • Handle: RePEc:taf:indinn:v:26:y:2019:i:8:p:920-942
    DOI: 10.1080/13662716.2019.1633278
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    Citations

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    Cited by:

    1. Tedds, Lindsay M. & Cameron, Anna & Khanal, Mukesh & Crisan, Daria, 2021. "Why Existing Regulatory Frameworks Fail in the Short-term Rental Market: Exploring the Role of Regulatory Fractures," MPRA Paper 106712, University Library of Munich, Germany.
    2. Sara Dalir & Abror Mahamadaminov & Hossein GT Olya, 2021. "Airbnb and taxation: Developing a seasonal tax system," Tourism Economics, , vol. 27(2), pages 365-378, March.
    3. Carrasco-Farré, Carlos & Snihur, Yuliya & Berrone, Pascual & Ricart, Joan Enric, 2022. "The stakeholder value proposition of digital platforms in an urban ecosystem," Research Policy, Elsevier, vol. 51(4).
    4. Lehmann, Julian & Weber, Florian & Waldkirch, Matthias & Graf-Vlachy, Lorenz & König, Andreas, 2022. "Institutional work battles in the sharing economy: Unveiling actors and discursive strategies in media discourse," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    5. Dequn Shi & Takkee Hui, 2022. "Toward Sustainable Couchsurfing: A Comparative Study on Hosting Motives and Behaviors between the USA and China," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    6. Jovana Karanović & Hans Berends & Yuval Engel, 2021. "Regulated Dependence: Platform Workers’ Responses to New Forms of Organizing," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 1070-1106, June.
    7. Ramona–Diana LEON, 2019. "The missing coordinates of the sharing economy: Intellectual capital and intergenerational learning," Smart Cities International Conference (SCIC) Proceedings, Smart-EDU Hub, vol. 7, pages 27-36, November.

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