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Institutional path dependence in European short-term rental regulation

Author

Listed:
  • Sardo, Alessio
  • Grillo, Allegra
  • Kaczmarek, Angelika
  • Mateos Durán, Arnulfo Daniel

Abstract

This article investigates how legal systems and legal experts across Europe respond to short-term rental accommodation (STRA), focusing on enforcement and authority allocation. It combines a comparative legal analysis of Germany, Poland, Italy and Spain with an experimental expert survey of approximately 180 legal scholars, embedding a strategic–interaction game that varies regulatory and market conditions. Findings reveal institutional lock-in: both legal systems as a whole and legal experts as individuals rely on traditional property/tenancy and competition frames, reinforcing path dependence. Experts also tend to overestimate compliance, even when fines are low and easily absorbed, underestimating the likelihood of strategic non-compliance.

Suggested Citation

  • Sardo, Alessio & Grillo, Allegra & Kaczmarek, Angelika & Mateos Durán, Arnulfo Daniel, 2026. "Institutional path dependence in European short-term rental regulation," LSE Research Online Documents on Economics 137828, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:137828
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    File URL: https://researchonline.lse.ac.uk/id/eprint/137828/
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    Keywords

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    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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