What is the Value of Being a Superhost?

PRESENTA: Mariana Rojas Breu (University of Paris Dauphine) / COMENTA: Mariana González (CONICET-FLACSO)

Jueves 25 de Octubre de 11 a 13 hs. en el aula 466 del Edificio Anexo de la Facultad de Ciencias Económicas de la UBA (Uriburu 781)

Abstract

We construct a search model where sellers post prices and produce goods of unknown quality. A match between a buyer and a seller reveals the quality of the seller. We look at the pricing decisions of the sellers in this environment. We then introduce a rating system whereby buyers reveal the seller’s type by giving them a `star’ if they are a high quality seller. We show that new sellers charge a low price to attract buyers and if they receive a star they post a high price. Furthermore, high quality sellers sell with a higher probability than new sellers. We then use data on Airbnb rentals to compare the pricing decisions of Superhosts (elite rentals) to non-Superhosts. We show that Superhosts: 1) charge higher prices, 2) have more bookings and 3) higher revenue than non-Super hosts.

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