The Impact of Platforms on the Existing Market

In the last decade, platforms have made their introduction into several markets. This has led to a confrontation between those who oppose and those who are in favour. Those who oppose argue it destroys jobs and embraces illegal practices. Those who are in favour highlight the potential economic efficiencies. Both parties however, lack any evidence to support their claims as the effects of platforms are still under investigated. This paper provides evidence on the effects caused by platforms entering established markets by looking at the effects Airbnb has had in the hoteling industry.