Sharing Unfairly: Racial Bias on Airbnb and the Role of Comments

Abstract

Many sharing economy platforms require users to reveal personal information on their profiles, which may open the door for racial biases against certain users. This study explores the relationship between race and labor outcomes in this environment, taking into account the role of reputation systems (i.e., free-form reviews). Specifically, in the context of the popular lodging marketplace Airbnb, we examine potential customers’ booking intentions in response to the racial identity of a host, feedback given to the host, and the behavior of the host themselves. Using an experimental design (N = 630) that manipulated the racial identity of the host (Black/White), the Airbnb review (Negative/Positive), and the response to the host’s response to the review (aggressive/non-aggressive/no response), we find that participants indicate a lower average likelihood of booking with a Black host than with a White host when the accommodation ad contained a negative review, while indicating to be more likely to book an Airbnb with a Black host when the ad contained a positive review. Since there is no evidence of racial bias for accommodation ads that do not contain reviews, the results demonstrate the importance of considering reviews when examining racial disparity in labor outcomes on online labor platforms. We probe potential explanations for the findings, ultimately scrutinizing the role of sharing economy platforms and its affordances in facilitating hiring discrimination.