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 2x1 between-subjects experimental vignette surveys are used to test the effects of three types of fairness (procedural, interpersonal, 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 United Kingdom, 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 article 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.