Targetted Intervention in the Platform Economy: The Case of Peer-to-Peer Short Term Rentals in Barcelona

Abstract

Technology and the availability of social networks have enabled a new type of transactions arising in this context. These transactions have irrupted in different markets such as for example, accommodation, transportation and finance. The distortions caused by these new markets – or market segments presents regulatory challenges. This paper focuses on the peer-to-peer short term rental market in Barcelona. The Catalan government requires a license to rent an apartment for tourist use. Using Airbnb as a proxy of the supply of peer-to-peer short term rentals in Barcelona and web-scraping data, this paper analyzes the heterogeneous supply of peer-to-peer tourist apartments listed on Airbnb: apartments with a license and without a license. This paper maps the aggregate supply as well as the legal and non-legal segment of the supply of peer-to-peer short term rentals and argues that the structure of this market requires for targeted regulatory intervention. A uniform, horizontal regulatory intervention does not only generate waste but also is enormously inefficient.