Once you have a review or two adjust your rates as needed. The researchers interpret black hosts lower prices as evidence of a similar but permanent disadvantage. In particular they maintain that their findings show how black hosts have a harder than average time attracting travelers and therefore must keep their prices lower than average in order to compete successfully. Airbnb s pricing suggestions implicitly acknowledge that price is a market driven outcome Luca says. In a market prices move until supply meets demand. And the data indicate that discriminatory preferences are factoring into prices.
Advice For Sharing economy Companies Thus far Airbnb has declined the researchers offer to visit the company and discuss possible mechanisms to facilitate trust without encouraging unintentional discrimination. But they do have recommendations not just for Airbnb but also for any online marketplace in the sharing economy. For starters Luca and Chinese Overseas America Number Data Edelman suggest evaluating whether profile pictures provide any necessary information to the customer. For instance ask yourself what useful information you learn from looking at the Airbnb host s face Edelman says. laid eyes on the host except on the website. There was a neighbor facilitator who dropped off the keys and picked them up. In any case the researchers recommend putting profile pictures in a less prominent place perhaps on a separate page from the picture of the product or property. On Airbnb the host s profile picture is the second most prominent element on any listing page displayed next to the default picture of the property. Research has shown that when something is more salient you respond more to it Luca says.
This is something a platform should think about in its design decisions. Is a host s physical appearance really the information Airbnb most wants to emphasize More generally the researchers recommend that sharing economy companies take website design seriously and to question early on whether their system design encourages racial bias.
