Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment

Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment

April 2017 | Edelman, Benjamin G., Michael Luca, and Daniel Svirsky
A field experiment on Airbnb reveals that guests with African-American-sounding names are 16% less likely to be accepted compared to guests with White-sounding names. This discrimination occurs across all types of hosts, including small and large landlords. The study finds that African-American guests have a 42% acceptance rate, compared to 50% for White guests. The discrimination is most pronounced among hosts with no African-American guests in their history, suggesting only a subset of hosts discriminate. The results indicate that Airbnb's design choices may facilitate discrimination, potentially undermining civil rights gains made in offline markets. The study also finds that discrimination persists across various host and property characteristics, including host gender, property type, price, and neighborhood demographics. Hosts with no African-American guests in their history are more likely to discriminate. The study estimates that hosts lose approximately $65–$100 in potential revenue by rejecting African-American guests. The findings suggest that online markets may still exhibit racial discrimination, and that platform design plays a critical role in enabling or preventing such discrimination. The study highlights the need for policy interventions to address discrimination in online marketplaces.A field experiment on Airbnb reveals that guests with African-American-sounding names are 16% less likely to be accepted compared to guests with White-sounding names. This discrimination occurs across all types of hosts, including small and large landlords. The study finds that African-American guests have a 42% acceptance rate, compared to 50% for White guests. The discrimination is most pronounced among hosts with no African-American guests in their history, suggesting only a subset of hosts discriminate. The results indicate that Airbnb's design choices may facilitate discrimination, potentially undermining civil rights gains made in offline markets. The study also finds that discrimination persists across various host and property characteristics, including host gender, property type, price, and neighborhood demographics. Hosts with no African-American guests in their history are more likely to discriminate. The study estimates that hosts lose approximately $65–$100 in potential revenue by rejecting African-American guests. The findings suggest that online markets may still exhibit racial discrimination, and that platform design plays a critical role in enabling or preventing such discrimination. The study highlights the need for policy interventions to address discrimination in online marketplaces.
Reach us at info@study.space