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Airbnb's Economic System

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4. Case Study Airbnb Airbnb is a company founded in San Francisco in 2008 by Brian Chesky (CEO), Joe Gebbia (CPO) and Nathan Blecharczyk (CTO). (Airbnb webpage) It is one of the most famous example of this new economic system. Their principles are based on the idea that especially young people nowadays prefer to only use things instead of owning them and being responsible for them. Geron (2013) goes as far as to say [setzt noch einen drauf so öppis ide art meini da ] that Airbnb provides its participants with liberty, power and independency. The principles discussed in Chapter 3 can be divided into two interconnected categories. The Microeconomics deals with the decision-making as well as the interaction of firms and households on a market …show more content…

Only if the inhabitants do have some money left to spend on extras such as holidays, can companies like Airbnb survive. The eighth principle by Mankiw & Taylor (2014, p. 10) deals with the connection between country’s GDP and its standard of living. Airbnb tries to reach people all over the world, which means that their customers are not only part of a single nation’s society. Moreover, even though the sharing economic system might be in favour of a market economy where government interference is kept as low as possible, in the long run, companies like Airbnb are interested in a global high standard of living so that as many people as possible have the chance to participate in the …show more content…

The sharing economy is a trade system advantaging all parties involved. It is based on comparing costs and benefits where opportunity cost plays a significant role and it is a market ruled by self-interest and efficiency. The biggest challenge, on the other hand, lies in finding the equilibrium between this free market economy and rational state interference, in other words, efficiency and equity. Only if this is provided, can inflation and unemployment be prevented and success and survival be maintained for the future. The sharing economy is a comparatively young phenomenon. To conclude, it can be said that the potential to grow and become more prosperous is yet to come provided that a stability and thus a world-wide wellbeing can be maintained and improved without weakening competition on the

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Rent One is a retail location but they are different than most retail because there are not actually departments within the store. If you think of other retail locations such as Walmart, you quickly notice the different departments. However, there are different levels within the company. Block 1 consist of the Owner of the company. Mr. Carrico, owner of Rent One, is an amazing man.

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Although economies will need to adapt to this pace, it is important to recognize the strides sectors of the economy have made to evolve with this environment. Companies like Postmates, Uber, and Favor working to alleviate the obstacles a rapidly growing economy affords. For many workers in this field of service, these short-term engagements provide a amount of income that can help with meeting rent or paying their car note. Additionally, as an independent contractor of a company, workers can design a work schedule that does not intervene with other commitments. While it is true that workers in the gig economy are provided with numerous benefits, disadvantages emerge when the needs of these workers are not met.

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The taxi drivers’ union rejects the arguments of the editorial published in Maclean’s and wishes to point out the weak evidence suggested from the article’s, Enough with the Uber bashing already, following: the editors of Maclean’s claim that Uber eliminates municipal oversight, but provides evidence that is weak because it is only being supported from the Uber company’s oversight rather than a government institution which could impose a fair tax for both businesses, the second claim that background checks for Uber drivers are not the problem and provides weak evidence by diverting the topic then implying that transactions which happen online between consumer and driver keep consumers safe, lastly the criticism of Uber is motivated by turf

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(American company financing startups) with an additional $20,000 in funding. At this time Airbed & Breakfast becomes Airbnb. They received $600k from Sequoia Capital and Y Ventures (specializing in incubation and financing of innovative companies). In 2010, Airbnb perceives $7.2 million Series A (A Series A round is the name typically given to a company's first significant round of venture capital financing ) Back in

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Introduction - If you’re an aspiring Airbnb host, it is of paramount importance that you ensure all your renters are comfortable in their temporary lodgings. That means making sure the listed property is warm, secure, and, above all else, clean. Keeping your rental property clean can be a difficult task, especially as some travelers can be a tad more careless than others, but it must be done if you are to satisfy clients and maintain a good reputation on Airbnb. In order to help you keep your tenants comfortable for the duration of their stay, I have prepared this list of some of my top tips for maintaining a tidy Airbnb space.

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The offers of accommodations via Airbnb are currently available in 192 Countries and in over 34,000 cities worldwide (O 'Toole, 2014). The valuation of Airbnb, the home-rental platform, is worth of $10 billion after it raised $450 million from private investment firm TPG in 2014 (Spector, Macmillan & Rusli, 2014). The type of business of Airbnb can be categorized to social networking service which focuses on the accommodation-rental service. The concept of Airbnb is actually a sharing economy which enables the customers to become the micro-entrepreneurs at the same time. Airbnb aims at not only providing the accommodation opportunities but also the experiences for people to interact with others all around the world and get to know how the local people live in a certain city and have some culture exchange experiences with international guests and hosts.

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INTRODUCTION An economic system is defined by the various processes of organizing and motivating labour, producing, distributing, and circulating of the resultant of human labour, such as merchandise and services, consumer durables , machines, tools, and other technology used as intake for hereafter production, and the infrastructure within and through which production, apportionment , and circulation occurs. These arrangements are intended by the political, cultural, and environmental conditions which they co-exist together (Gemma; 2014). In a command economic system or planned economy, the federal government controls the economy by deciding how the state would use and distribute resources. The government also regulates prices and wages

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Everynight over half a million Americans will fall asleep without a home, they are homeless in one of the richest countries on the planet. Capitalist countries naturally have an imbalance of wealth and thus the citizens of these countries often face the moral conundrum of charity and humanitarian aid. In many smaller cultures the dependency of the few is the burden of many however when discussing large nations and the suffering of hundreds of thousands one must consider factors such as population capacity, resource management and long term dependency. When such factors are considered it becomes much harder to maintain a from each according to his ability and to each according to his need system. Large nations cannot bear the burden of homeless,

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Having a value of over $10 billion, Airbnb “exceeds that of well-established global hotel chains like Hyatt” (Hospitality Net). This proves that this online service is significantly surpassing these stable hotel chains that have been competing in the industry for over 60 years. Along with this, a recent report by HVS Consulting & Valuation found that “hotels lose approximately $450 million in direct revenues per year to AirBnb” (Orourke). Although Marriott International has been performing with a 45% increase in revenues from 2012 to 2016, Airbnb has definitely had an impact on the consumer perspective of traditional hotel rooms. In addition to this, hotels also lose over $108 million of food and beverage revenues as a result of guests not spending their money at the hotel’s restaurant.

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According to the first text “The sharing economy: a money-making space made for startups”, the author, Suzanne Bearne talks with the entrepreneur, Stephany, who quite likes the sharing economy. He believes that the sharing economy contributes to the creation of social capital, as it allows for example, one person to settle in a place that is first and foremost much cheaper than a hotel. and thereupon a place that will contribute to social value, such as a unique experience.

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