How to Ruin a Good Idea From the Sharing Economy to Profit Maximization - The Case of Airbnb

The short-term rental market offers clear benefits, but like any good idea, it can be misused. What began as a way for individuals to rent out their homes while away has increasingly become a business for professional landlords. This shift reduces the supply of long-term housing and drives up rents. In response, local communities are calling for government regulation of short-term rentals, and nearly 60 cities worldwide have already implemented such measures. However, the results of these regulations have not always been satisfactory. We need a better understanding of their impact so that we can preserve the benefits of short-term rentals while mitigating their drawbacks.