Transferable Sharing Rights: A Theoretical Model for Regulating Airbnb and the Short-Term Rental Market
8 Pages Posted: 24 Oct 2014
Date Written: October 24, 2014
This short essay proposes a theoretical model for regulating the short-term rental market, which is typified by online markets such as Airbnb.com. The basic mechanism proposed here is a "transferable sharing right" (TSR), which is modeled on existing transferable development rights regimes. The proposed TSR regime would provide cities a means of regulating short-term rentals while also charging a fee equal to externalities and lost city revenue resulting from short-term rentals. Further, TSRs could be used to re-invest in neighborhoods where short-term rentals occur or to drive economic development to neighborhoods where cities seek to encourage tourism.
Keywords: sharing economy, TSRs, TDRs, property, tourism, land use
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