4 ms·

>if true, especially in the presence of supply constraints, this has to increase market clearing prices. AirBnB arguably increases supply of people in beds thr

• dragonwriter 8y ago
  > AirBnB arguably increases supply of people in beds through more efficient utilization. That's not supply (which is a measure of what is on offer to be sold), it's market clearing quantity. And, yes, AirBnB increases the supply and market clearing quantity (and decreases average price) of short-term occupancy by transferring units already purchased or rented in the long-term market to be rented the short-term market (which drives up demand and market clearing price in the long-term market.)