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Supplier Participation in Short-Term Rental Markets – Geospatial Socioeconomic Analysis of Airbnb Hosts in Los Angeles, California

Authors: Avijit Sarkar, University of Redlands, James Pick*, University of Redlands
Topics: Economic Geography, Business Geography, Urban Geography
Keywords: geospatial analysis, sharing economy, rental markets, Los Angeles, host participation
Session Type: Paper
Presentation File: No File Uploaded

This paper examines spatial patterns and socioeconomic antecedents of Airbnb host participation in the shared accommodation economy for a large U.S. metropolitan city, Los Angeles, California. The conceptual model has geospatial and multivariate components.
The research methodology consists of two main steps. First, cluster and outlier spatial analysis determine hotspots and coldspots of host participation, and spatial autocorrelation is employed to diagnose spatial bias in host participation; such bias can unduly influence the examination of socioeconomic associations with patterns of host participation.
Second, stepwise Ordinary Least Squares (OLS) regression analysis empirically validates the conceptual model of host participation in the shared accommodation economy. OLS regression results reveal that host participation in the shared accommodation economy in Los Angeles is inversely associated with young dependency ratio, median household income, and owner occupied households with a mortgage, and positively associated with sex ratio. Additionally, positive association of employment in finance, insurance, and real estate with host participation is found. This study’s novel findings also include positive association of attitude towards greener consumption indicating that shared accommodation hosts are likely to participate in the sharing economy motivated by ecological sustainability of collaborative consumption.
Understanding the antecedents of participation in the shared accommodation economy – not by consumers, but from the perspective of providers (suppliers) is a unique feature of this work. Furthermore, this is one of the first systematic attempts to examine geospatial agglomerations and associations of relevant factors on host participation in the shared accommodation economy for a large U.S. city.

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