Assignment:
Air BnB and other Market Sharing Companies
Read the articles posted on iLearn then answer the questions/prompts below.
The sharing economy has become a bone of contention as it has become a disruptive force in numerous industries, particularly the taxi industry thanks to Uber and Lyft, which has been protected from competition by state and local laws. Protectionism, as any Economics 101 student could attest, leads to poor services, lack of innovation and poor pricing. Companies like Lyft and Uber have created competition where it was essentially was non- existent and the existing taxi industry has been forced to respond to the altered competitive landscape.
The philosophical debate over Airbnb other aspects of the sharing economy typically divide along the political (red and blue) axis. Free market advocates have quickly fallen in love with these companies, seeing them as the marketplace in action, while progressives tend to deride the "sharing" economy as an attack on labor unions that will choke off local government from the critical tax revenue it garners from traditional hotels. Unsurprisingly, Hillary Clinton has promised to get government heavily involved in regulating different aspects of sharing economy companies.
Readings
Read the seven (7) articles posted on iLearn regarding AirBnB and other market sharing companies.
Questions/prompts
Free market advocates have quickly fallen in love with the market sharing companies (e.g., AirBnB, Uber), seeing them as the marketplace in action, while progressives tend to deride the "sharing" economy as an attack on labor unions that will choke off local government from the critical tax revenue it garners from traditional hotels.
1. Defend your position: Are you for or against market sharing companies/economies (free market or progressive) Why or why not?
2. Is market sharing companies and economies good or bad for tourism and travelers? Why or why not?