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With increased supply come decreased price and increased usage. Uber and airbnb increase the supply of transportation and hotel places in total, decreasing the
by mahyarm 10y ago
With increased supply come decreased price and increased usage. Uber and airbnb increase the supply of transportation and hotel places in total, decreasing the price for customers and increasing the total volume used.
- acjohnson55 10y agoSpecifically, this is because demand for these things is elastic, in econ terms. A buddy of mine in the hotel industry says that this seems to be the case. They can't quantify the negative impact of AirBnB on their bottom line. But he's at a high end hotel, I'm sure different parts of the industry see different things.