Reducing racial discrimination in the sharing economy: Empirical results from Airbnb

Recent studies have revealed that racial discrimination is arising and persisting in online sharing marketplaces. We investigate the factors that affect discrimination on Airbnb and explore strategies to reduce discrimination. We empirically prove that discrimination between hosts and guests is bidirectional and propose a novel method for quantifying bidirectional discrimination. It is revealed that discrimination is significantly correlated with the number of reservations and the rental price of listings. Moreover, regression analysis suggests that (1) a positive reputation represented by superhost status and recognition and praise in reviews of guests can help reduce discrimination, (2) self-disclosure-related factors including verifications of hosts and self-descriptions of guests can help mitigate discrimination, and (3) several particular topics discussed in reviews and self-descriptions of both hosts and guests are significantly correlated with discrimination. In summary, our results offer comprehensive and clear guidance for ways in which transaction parties and platforms can reduce discrimination.

Automated summary

Recent studies show that racial discrimination is present in online sharing marketplaces, with factors such as number of reservations, rental price, reputation, and self-disclosure influencing discrimination. The study provides comprehensive guidance on reducing discrimination.