Re:How Google I/O impacts Airbnb Availability
by toomuchtodo on Tuesday June 24, 2014 @11:54PM
(#7942154)
> Exactly. Higher prices provides the signal to increase supply.
This assumes supply is elastic. Supply of housing in SF is anything but.
Re:How Google I/O impacts Airbnb Availability
by cheald on Wednesday June 25, 2014 @01:41AM
(#7942429)
Short-term rental supply may well be, though.
Re:How Google I/O impacts Airbnb Availability
by pjc50 on Wednesday June 25, 2014 @05:04AM
(#7942893)
Indeed. I know someone who's being evicted from their flat in Edinburgh so the owners can rent it out for 3x the normal rent during the Festival. Of course, that doesn't cause them to vanish; they now have to find somewhere less convenient to live.
This is another example of how modern "elasticity" is pushed onto the people with least. Like zero-hours contracts.
Re:How Google I/O impacts Airbnb Availability
by eyko on Wednesday June 25, 2014 @06:06AM
(#7943042)
May being the operative word.
Correct me if I am wrong, I guess only on the condition that everyone is using that service, that theory will apply.
If only 10% of air-bnb users are using it, they will certainly benefit from it.
Consider an occasional host planning their upcoming schedule. Knowing you would get an 18% premium for Google I/O days could very well convince you to be a host those days instead of other more convenient days. That behavior triggers more supply for Google I/O, which is exactly what conference goers need. Without that increased supply, the conference goers will be paying even more with even fewer options.