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Reference Price Effects in Online Vacation Rental Markets

Abstract: We study the effect of non-focal price cues that frequently appear in online marketplaces (specifically the “From…” price on Airbnb.com) and find preliminary evidence that these prices can serve as quality signals and have an effect on bookings.

Speaker Bio: Shrabastee Banerjee is a 4th year PhD student in the Department of Marketing at Questrom School of Business, Boston University. She is broadly interested in digital marketplaces, particularly (1) online reputation systems and (2) behavior of agents in the sharing economy.

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