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Exactly. Higher prices provides the signal to increase supply. Consider an occasional host planning their upcoming schedule. Knowing you would get an 18% premi
by crazy1van 12y ago
Exactly. Higher prices provides the signal to increase supply.
Consider an occasional host planning their upcoming schedule. Knowing you would get an 18% premium for Google I/O days could very well convince you to be a host those days instead of other more convenient days. That behavior triggers more supply for Google I/O, which is exactly what conference goers need. Without that increased supply, the conference goers will be paying even more with even fewer options.
- cfang 12y agoCorrect me if I am wrong, I guess only on the condition that everyone is using that service, that theory will apply. If only 10% of air-bnb users are using it, they will certainly benefit from it.
- toomuchtodo 12y ago> Exactly. Higher prices provides the signal to increase supply. This assumes supply is elastic. Supply of housing in SF is anything but.
- cheald 12y agoShort-term rental supply may well be, though.
- pjc50 12y agoIndeed. I know someone who's being evicted from their flat in Edinburgh so the owners can rent it out for 3x the normal rent during the Festival. Of course, that doesn't cause them to vanish; they now have to find somewhere less convenient to live. This is another example of how modern "elasticity" is pushed onto the people with least. Like zero-hours contracts.
- eyko 12y agoMay being the operative word.