Spillover in Sharing Economies: Network Effect of Bike-sharing Services on Home-sharing Performance

Abstract

Bike-sharing provides a convenient transportation layer with its inter-connected bike station network. However, the economic value spilled by the network is unknown. This study fills this gap by empirically connecting two separate yet interrelated sharing services: bike-sharing and home-sharing. Using data from CitiBike and Airbnb, the study conducts a difference-in-difference analysis to examine the effect of new bike-sharing entries on local home-sharing performance. The results show that new bike-sharing entries increase nearby Airbnb properties’ monthly revenue by $127 (9.59$1.41 (per reachable station), $0.27 (per second saved), and$17.36 (per dollar saved). The study also uncovers the moderating effect of first/last mile connection and property luxuriousness. Our findings have important implications for both bike-sharing network design and home-sharing marketing