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Fang-chang Kuo and Hsin-hsi Shih
''The impact of Airbnb: New evidence from Taiwanese hotels''
( 2022, Vol. 42 No.3 )
We investigate the impact of Airbnb on incumbent hotels in Taiwan. Different from previous studies, we propose a novel set of instrumental variables, which measure unused resources or capcities, to identify the causal impact. Compared to OLS estimates, IV-2SLS estimates indicate larger negative effects from Airbnb, suggesting potential biases resulted from endogeneity issues. Furthermore, smaller and lower quality hotels are heavily affected by Airbnb listings.
Keywords: Airbnb, hotel, competition, instrumental variable
JEL: L8 - Industry Studies: Services: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Sep 27 2021 Manuscript Accepted : Sep 30 2022

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