Digital discrimination
Subtitle: the case of Airbnb.com
By: Benjamin Edelman, Michael Luca
Contributors: Luca, Michael, author; Harvard Business School
Series: Working paper / Harvard Business School -- 14-054; Working paper (Harvard Business School) -- 14-054
Publisher: Harvard Business School
Published: 2014
Place of publication: Boston
Language: eng
Number of pages: 21
Description: Online marketplaces often contain information not only about products, but also about the people selling the products. In an effort to facilitate trust, many platforms encourage sellers to provide personal profiles and even to post pictures of themselves. However, these features may also facilitate discrimination based on sellers' race, gender, age, or other aspects of appearance. In this paper, we test for racial discrimination against landlords in the online rental marketplace Airbnb.com. Using a new data set combining pictures of all New York City landlords on Airbnb with their rental prices and information about quality of the rentals, we show that non-black hosts charge approximately 12% more than black hosts for the equivalent rental. These effects are robust when controlling for all information visible in the Airbnb marketplace. These findings highlight the prevalence of discrimination in online marketplaces, suggesting an important unintended consequence of a seemingly-routine mechanism for building trust.
Notes: "January 2014"--Publisher's Web site.

Includes bibliographical references (page 14).