Fairness, legitimacy and the regulation of home-sharing platforms

Abstract

Purpose

The purpose of this study is to contribute to current hospitality and tourism research on the sharing economy by studying the under-researched aspects of regulatory desirability, moral legitimacy and fairness in the context of home-sharing platforms (e.g. Airbnb).

Design/methodology/approach

Three separate 2×1 between-subjects experimental vignette surveys are used to test the effects of three types of fairness (procedural, interpersonal and informational) on two outcomes: moral legitimacy and regulatory desirability.

Findings

The results of the research show that high perceived fairness across all three types increases moral legitimacy and reduces regulatory desirability. Respondents who perceive a fictional home-sharing platform to be fair consider it to be more legitimate and want it to be less regulated.

Research limitations/implications

Following established practices and reducing external validity, the study uses a fictional scenario and a fictional company for the experimental vignette. The data collection took place in the UK, prohibiting cultural comparisons.

Practical implications

The research is useful for home-sharing platform managers by showing how they can boost moral legitimacy and decrease regulatory desirability through a strong focus on fairness. It can also help policymakers and consumer protection advocates by providing evidence about regulatory desirability and how it is affected by fairness perceptions.

Originality/value

The study adds to hospitality and tourism research by offering theoretically meaningful and practically relevant conclusions about the importance of fairness in driving stakeholder opinions about home-sharing platforms.

Citation

Newlands, G. and Lutz, C. (2020), "Fairness, legitimacy and the regulation of home-sharing platforms", International Journal of Contemporary Hospitality Management, Vol. 32 No. 10, pp. 3177-3197. https://doi.org/10.1108/IJCHM-08-2019-0733