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Nathalie Jayne Williams - 121717

Felicia Nathhorst Malmgren - 121724

Number of Pages: 103

Number of Characters: 241.854

Submission Date: 15.11.2019

Supervised by Philipp Hukal

AUTHORS

MASTER THESIS

Forms of Regulating Multi-Sided Platforms in Nine European Cities

MSc in E-Buisness

THE PLATFORM POLICY PUZZLE

2

Acknowledgements

We would like to thank our supervisor, Associate Professor Phillip Hukal, for the continuous guidance and support throughout the thesis writing process. In addition, we would like to acknowledge, Assistant Professor Maria Jose Schmidt-Kessen, for dedicating her time and valuable knowledge in supporting us. 3

Abstract

It is no surprise that many believe platforms are a 21st-century tech innovation given the hype around

emerging platform businesses in this day and age. Driven by rapid technological advancements, Multi- Sided Platforms h ave disrupted a vast majority of established industries in the past two d ecades. However, incumbent firms are raising concerns regarding unfair competition, labourers about the lack

of social benefits, tax authorities about the loss of income, citizens about increasing housing prices, the

list goes on. The common denominator is that, due to their technological infrastructure, platforms have

often been able to circumvent ex isting legislati on. Alth ough qualitative research has been done

regarding forms of regulating MSPs, little quantitative research has been done. In order to bridge this

gap, a mixed method approach is adopted analysing effective forms of regulation MSPs. In order to contextualise the study nine cities within Europe has been chosen, namely: Amsterdam, Barcelona,

Berlin, Brussels, Copenhagen, Lisbon, London, Paris, and Vienna. By grouping the cities based on their

regulatory motivation, the effect of the various forms of regulation have been analysed in order to intervention play a crucial role in what forms of regulation is implemented. Furthermore, cities can introduce the same regulatory mechanism to address certain policy issues although having different underlying motives. The effect of regulatory intervention varies across the cities with the level of

enforcement playing an essential role. A transparent relationship between MSP and legislators with the

sharing of both data and knowledge to make i nformed decisions is necessary. By adopting a co- regulatory approach and involving outside intermediary parties, legislation can be more flexible and unfragmented. The existing regulatory environment does not suit the rapidly evolving digital age we are living in. 4

Table of Contents

Acknowledgements 2

Abstract 3

Table of Contents 4

List of Figures 7

List of Tables 8

List of Abbreviations 9

1. Introduction 10

2. Literature Review 13

2.1. Multi-Sided Platforms 13

2.2. The Sharing Economy 15

2.3. Regulating Multi-Sided Platforms 17

2.3.1 Reasons to Regulate 18

2.3.2 The Dangers of Over-Regulation 21

2.3.3 Regulatory Setting 23

2.4. Related Studies 28

3. Cities and Airbnb 30

3.1. A Brief History of Airbnb 30

3.2. Regulatory Motives of European Cities 31

3.3. Regulatory Actions Towards Airbnb 32

3.4. Legal Framework of Chosen Cities 33

4. Methodology 39

4.1. Research Philosophy 39

4.2. Research Approach 40

4.3. Research Design 40

4.4. Data Collection 43

4.5. Credibility 43

5. Analysis and Findings 45

5.1. Qualitative Analysis 45

5.1.1. Group A 46

5.1.2. Group B 46

5.1.3. Group C 47

5.2. Quantitative Analysis 48

5.2.1. Data Processing 48

5

5.2.1.1 Overview of the Datasets 48

5.2.1.2. Preparation of Data 49

5.2.1.2.1. Removal of Inactive Listings 50

5.2.1.2.2. Defining New Variables 50

5.2.1.3. Statistical Test 53

5.2.2. Findings 53

5.2.2.1. Group A 54

5.2.2.2.1. Number of Listings 55

5.2.2.1.2. Listings per Host 61

5.2.2.1.3. Host Local 68

5.2.2.1.4. Price 72

5.2.2.1.5. Summary of Results 74

5.2.2.2. Group B 76

5.2.2.2.1. Number of Listings 76

5.2.2.2.2. Listings per Host 79

5.2.2.2.3. Host Local 83

5.2.2.2.4. Price 85

5.2.2.2.5. Summary of Results 86

5.2.2.3. Group C 87

5.2.2.3.1. Number of Listings 87

5.2.2.3.2. Listings per Host 89

5.6.2.2.3.3. Host Local 91

5.2.2.3.4. Price 92

5.2.2.3.5. Summary of Results 93

6. Discussion and Implications 95

6.1. Discussion of Results 95

6.2. Discussion of Regulating MSPs in General 99

7. Conclusion 104

Bibliography 106

Appendices 119

Appendix A - Chosen Variables from Raw Data 119

Appendix B quotesdbs_dbs20.pdfusesText_26