The Tragedy of Your Upstairs Neighbors: Is the Airbnb Negative Externality Internalized?

4 Pages Posted: 31 May 2014  

John J. Horton

New York University (NYU) - Department of Information, Operations, and Management Sciences

Date Written: May 29, 2014

Abstract

I consider the question of whether apartment building owners will, in a competitive rental market, set a policy with respect to Airbnb hosting that is socially efficient. If tenants can sort across apartments based on the owners policy — voting with their feet so to speak — then the equilibrium level of Airbnb listing would be such that private benefits would equal social costs.

Suggested Citation

Horton, John J., The Tragedy of Your Upstairs Neighbors: Is the Airbnb Negative Externality Internalized? (May 29, 2014). Available at SSRN: https://ssrn.com/abstract=2443343 or http://dx.doi.org/10.2139/ssrn.2443343

John J. Horton (Contact Author)

New York University (NYU) - Department of Information, Operations, and Management Sciences ( email )

44 West Fourth Street
New York, NY 10012
United States
6175952437 (Phone)

HOME PAGE: http://john-joseph-horton.com

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