1. Estimating the Impact of Airbnb
on the Hotel Industry
The Rise of the Sharing Economy
Team #1 Deenadhayalan.P

4. abstract
• In this study Airbnb, a sharing economy pioneer offering short-term
accommodation.
• Combining data from Airbnb and the Texas hotel industry, estimate
the impact of Airbnb’s entry into the Texas market on hotel room
revenue, and study the market response of hotels
• To identify Airbnb’s causal impact on hotel room revenue, we use a
difference-in-differences empirical strategy that exploits the
significant spatiotemporal variation in the patterns of Airbnb adoption
across city-level markets
• this work provides empirical evidence that the sharing economy is
making inroads by successfully competing with, and acquiring
market share from, incumbent firms.

5. Introduction
“a social website that connects people who
have space to spare with those who are
looking for a place to stay”

6. Introduction