With price transparency, hosts as well as guest learn new information, changing equilibrium outcomes.

Interesting new paper by Kevin Tran, @leonardomadio.bsky.social, @micherossi.bsky.social and Mark Tremblay.

#EconSky
Reposted from Michelangelo Rossi
How does price transparency affect a market?🤔

In our new paper, Kevin Tran, @leonardomadio.bsky.social, Mark J. Tremblay, and I analyze Airbnb’s policy change in the EU, where cleaning fees became fully transparent. The surprising finding: transparency doesn’t lead to lower prices. Here’s why:

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