INFORMS Open Forum

New Research Finds Algorithm Meant to Eliminate Racial Disparities in Airbnb Revenue Fails to Enhance Revenue Equality

  • 1.  New Research Finds Algorithm Meant to Eliminate Racial Disparities in Airbnb Revenue Fails to Enhance Revenue Equality

    Posted 5 days ago

    CATONSVILLE, MD, October 12, 2021 – Airbnb created a free, smart-pricing tool for its Airbnb hosts. But the tool meant to promote racial equality has done little to solve the problem. New research in the INFORMS journal Marketing Science finds the algorithm's price recommendations are not affected by the host's race, but rather the tool's race blindness has resulted in unintended consequences that may lead to suboptimal pricing for Black hosts.

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    Ashley Smith
    Public Relations Specialist
    INFORMS
    Catonsville MD
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