What is the Value of Being a Superhost?

RePEc Short ID: pwa65
ORCID iD: 0000-0003-2406-9910

Berentsen, Aleksander; Breu, Mariana Rojas; Waller, Christopher J.

doi:10.20955/wp.2019.019

Working Paper

What is the Value of Being a Superhost?

Abstract: We construct a search model where sellers post prices and produce goods of unknown quality. A match reveals the quality of the seller. Buyers rate sellers based on quality. We show that unrated sellers charge a low price to attract buyers and that highly rated sellers post a high price and sell with a higher probability than unrated sellers. We fi nd that welfare is higher with a ratings system. Using data on Airbnb rentals, we show that Superhosts and hosts with high ratings: 1) charge higher prices, 2) have a higher occupancy rate and 3) higher revenue than average hosts.

Keywords: Ratings; Airbnb; Price Posting;

JEL Classification: D21; D40; L11;

https://doi.org/10.20955/wp.2019.019