Abstract
Despite the recent proliferation of sharing-economy platforms, little is known about what drives peer-providers to enter onto these platforms. We study this question by looking at the role of macro- environmental factors in the context of listings posted by hosts on the Airbnb platform. Using a dataset of Spanish cities for the period 2010-2015 we identify four aspects that are positively related to the entry of peer-providers: growth in hotel market demand, hotel brand differentiation, the unemployment rate, and the availability of underused assets. We also identify barriers to entry, including a higher level of hotel quality and stricter regulation. In addition, our results show that some determinants have a different effect on the entry of different types of peers.
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