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Reading this comment has made me think about the effect of technology on increased competition, whether that be globalization, online dating, or physical retail
by bhl 7y ago
Reading this comment has made me think about the effect of technology on increased competition, whether that be globalization, online dating, or physical retail. With the rental market, that increased competition for a fixed housing supply translates into an increase in prices. Without any shifts in the supply curve, changes in demand effectively become a zero-sum game. Kind of strange to ask, but does that mean “demand” is more sensitive than “supply” to improvements in technology?
- icebraining 7y agoAirBnB caused an increase in the supply of short-term rentals, which caused an increase in the demand of housing. I don't you can say either was more affected.
- bhl 7y agoIt seems that short-term rentals came from long-term leases, right? In that sense, housing supply is still constant while demand has increased.