- 31 Jan 2023
- Cold Call Podcast
Addressing Racial Discrimination on Airbnb
For years, Airbnb gave hosts extensive discretion to accept or reject a guest after seeing little more than a name and a picture, believing that eliminating anonymity was the best way for the company to build trust. However, the apartment rental platform failed to track or account for the possibility that this could facilitate discrimination. After research published by Professor Michael Luca and others provided evidence that Black hosts received less in rent than hosts of other races and showed signs of discrimination against guests with African American sounding names, the company had to decide what to do. In the case, “Racial Discrimination on Airbnb,” Luca discusses his research and explores the implication for Airbnb and other platform companies. Should they change the design of the platform to reduce discrimination? And what’s the best way to measure the success of any changes?
- 12 Oct 2022
- Research & Ideas
When Design Enables Discrimination: Learning from Anti-Asian Bias on Airbnb
Airbnb bookings dropped 12 percent more for hosts with Asian names than other hosts during the early months of the COVID-19 pandemic, says research by Michael Luca. Could better design deter bias, particularly during times of crisis?
- 25 Mar 2021
- Research & Ideas
Steer Clear of the Blind Spots That Derail Experiments
Companies are testing everything from website features to compensation strategies, but five common mistakes can undermine their efforts, says Michael Luca. Open for comment; 0 Comments.
- 15 Dec 2020
- Research & Ideas
The Unspoken Messages of COVID-19 Restrictions
What does it take to cut through COVID-19 fatigue? Governments may need to refine how they convey exposure risks to a weary public, says research by Michael Luca and Edward Glaeser. Open for comment; 0 Comments.
- 21 Sep 2020
- Working Paper Summaries
The Targeting and Impact of Paycheck Protection Program Loans to Small Businesses
Survey data on business owners collected by the Alignable network shows that lending to bank customers in better financial positions may have been prioritized, possibly crowding out less connected firms that would have benefitted more from the loans.
- 08 Sep 2020
- Sharpening Your Skills
Capitalism Works Better When I Can See What You're Doing
Lower prices. More innovation. Better government. Transparency fuels the basic principles of competitive business and open government. Well, most of the time. Open for comment; 0 Comments.
- 24 Aug 2020
- Research & Ideas
How Much Will Remote Work Continue After the Pandemic?
A new survey suggests that at least 16 percent of employees will remain at-home workers long after COVID-19 recedes, report researchers Christopher Stanton, Zoe Cullen, and Michael Luca. Open for comment; 0 Comments.
- 02 Aug 2020
- What Do You Think?
Is the 'Experimentation Organization' Becoming the Competitive Gold Standard?
SUMMING UP: Digital experimentation is gaining momentum as an everyday habit in many organizations, especially those in high tech, say James Heskett's readers. Open for comment; 0 Comments.
- 28 Jul 2020
- Research & Ideas
Racism and Digital Design: How Online Platforms Can Thwart Discrimination
Poor design decisions contribute to racial discrimination on many online platforms. Michael Luca and colleagues offer tips for reducing the risk, used by Airbnb and other companies. Open for comment; 0 Comments.
- 21 Jul 2020
- Working Paper Summaries
Business Reopening Decisions and Demand Forecasts During the COVID-19 Pandemic
Findings from a nationwide survey underscore the importance of demand projections and interdependencies among businesses for owners’ reopening decisions. Businesses expect the demand for their services will be greatly depressed for many months to come.
- 18 Apr 2020
- Working Paper Summaries
How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey
This survey of 5,819 small businesses in the United States shows that the pandemic has already caused massive dislocation among small businesses. Many businesses think they will not be able to survive if the crisis persists for the coming months. The immediacy of new funding will likely impact medium-term outcomes.
- 13 Apr 2020
- Research & Ideas
Small Businesses Are Worse Off Than We Thought
A survey of small-business owners shows that lack of liquidity and skepticism of government programs are compounding COVID crisis recovery efforts. Open for comment; 0 Comments.
- 24 Jul 2019
- Lessons from the Classroom
Can These Business Students Motivate Londoners to Do the Right Thing?
In the Harvard Business School course Behavioral Insights, students work in the UK with psychology experts to understand what motivates consumers and workers. What they learn can help businesses of all types, says Michael Luca. Open for comment; 0 Comments.
- 12 Nov 2018
- Working Paper Summaries
Product Quality and Entering Through Tying: Experimental Evidence
This study empirically explores Google’s decision to tie its new reviews product to the top of its search results, excluding competitors. Results suggest that such "tying" can facilitate dominant platforms’ entry into adjacent markets, even when the tied product is of worse quality compared to existing options.
- 29 Oct 2018
- Research & Ideas
Hunting for a Hot Job in High Tech? Try 'Digitization Economist'
Amazon has more economists on staff than any university economics department, and technology firms are snapping them up the minute they graduate, says Michael Luca. Why? Call it the economics of digitization. Open for comment; 0 Comments.
- 06 Jun 2018
- Working Paper Summaries
Complex Disclosure
This study shows that companies looking to hide unfavorable information might strategically be making contract terms unnecessarily complex, harming consumers and undermining the effectiveness of disclosure. These results highlight a role for regulation that would encourage simpler forms of disclosure.
- 23 May 2018
- Research & Ideas
How to Know If Your Neighborhood Is Being Gentrified
Using modern digital tools, Michael Luca and colleagues hope to give urban planners a look into gentrification as it is happening. Open for comment; 0 Comments.
- 05 Mar 2018
- Working Paper Summaries
Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change
This study finds that data from digital platforms (in this case, Yelp) can help forecast which neighborhoods are gentrifying and provide new ways to measure business landscape changes that accompany demographic changes.
- 08 Nov 2017
- Research & Ideas
Handgun Waiting Periods Prevent Hundreds of Homicides Each Year
Waiting-period laws reduce gun-related homicides by 17 percent and gun-related suicides by up to 11 percent, according to a study by Deepak Malhotra, Michael Luca, and Christopher Poliquin. Open for comment; 0 Comments.
COVID-19 Lessons: Social Media Can Nudge More People to Get Vaccinated
Social networks have been criticized for spreading COVID-19 misinformation, but the platforms have also helped public health agencies spread the word on vaccines, says research by Michael Luca and colleagues. What does this mean for the next pandemic?