Julius Goedde
@juliusgoedde.bsky.social
PhD candidate at Paris School of Economics. Working on market design and the digital economy. On the job market
https://julius-goedde.github.io/
https://julius-goedde.github.io/
Note that markets don’t clear though. At low prices, there’s excess demand for nice homes from guests, which has to be rationed (like under rent control). In the model rationing is uniformly at random. Empirically, rationing seems to have strikingly little side-effects on the platform.
November 25, 2024 at 7:24 AM
Note that markets don’t clear though. At low prices, there’s excess demand for nice homes from guests, which has to be rationed (like under rent control). In the model rationing is uniformly at random. Empirically, rationing seems to have strikingly little side-effects on the platform.
Thanks for the question! You can view it as reduced demand for your own home (just like higher labor supply could be seen as lower demand for leisure). Personally, I find the higher supply interpretation more intuitive.
November 25, 2024 at 7:24 AM
Thanks for the question! You can view it as reduced demand for your own home (just like higher labor supply could be seen as lower demand for leisure). Personally, I find the higher supply interpretation more intuitive.
Sadly, I don't know of a nice survey paper on markets with similar token money. Time to write one! Maybe closest to what you are looking for is this MD handbook chapter, maybe also the old Krugman post. But could be easy enough to just talk a bit about home exchanges :)
www.nber.org/system/files...
www.nber.org/system/files...
www.nber.org
November 24, 2024 at 9:08 PM
Sadly, I don't know of a nice survey paper on markets with similar token money. Time to write one! Maybe closest to what you are looking for is this MD handbook chapter, maybe also the old Krugman post. But could be easy enough to just talk a bit about home exchanges :)
www.nber.org/system/files...
www.nber.org/system/files...
Absolutely! It’s a beautiful old idea. Smartphone apps have made it even easier to do time banking and other exchange systems than in the 70s
November 24, 2024 at 1:23 PM
Absolutely! It’s a beautiful old idea. Smartphone apps have made it even easier to do time banking and other exchange systems than in the 70s
I'm very grateful for the help of my fantastic supervisors (Olivier Tercieux and @liamwrenlewis.bsky.social ) and to the platform for sharing the amazing dataset!
📄 Full paper: www.dropbox.com/scl/fi/dykth...
🌐 Website: julius-goedde.github.io
#EconSky #EconJobMarket #JMP
17/🧵
📄 Full paper: www.dropbox.com/scl/fi/dykth...
🌐 Website: julius-goedde.github.io
#EconSky #EconJobMarket #JMP
17/🧵
www.dropbox.com
November 23, 2024 at 12:32 PM
I'm very grateful for the help of my fantastic supervisors (Olivier Tercieux and @liamwrenlewis.bsky.social ) and to the platform for sharing the amazing dataset!
📄 Full paper: www.dropbox.com/scl/fi/dykth...
🌐 Website: julius-goedde.github.io
#EconSky #EconJobMarket #JMP
17/🧵
📄 Full paper: www.dropbox.com/scl/fi/dykth...
🌐 Website: julius-goedde.github.io
#EconSky #EconJobMarket #JMP
17/🧵
💡 Takeaways
1. Lessons from traditional markets may not easily extend to token economies
2. Market designs without real money can have advantages even in settings where money is common => exciting opportunities for more MD research 👏
16/🧵
1. Lessons from traditional markets may not easily extend to token economies
2. Market designs without real money can have advantages even in settings where money is common => exciting opportunities for more MD research 👏
16/🧵
November 23, 2024 at 12:32 PM
💡 Takeaways
1. Lessons from traditional markets may not easily extend to token economies
2. Market designs without real money can have advantages even in settings where money is common => exciting opportunities for more MD research 👏
16/🧵
1. Lessons from traditional markets may not easily extend to token economies
2. Market designs without real money can have advantages even in settings where money is common => exciting opportunities for more MD research 👏
16/🧵
Evidence, in line with different expectations: Using a proxy for personal residences (single listing & < 10 reviews/year), 97% of exchange platform listings are real homes, but only ~10% of Airbnb guest ratings involve plausibly personal residences, others are quasi-professional!
15/🧵
15/🧵
November 23, 2024 at 12:32 PM
Evidence, in line with different expectations: Using a proxy for personal residences (single listing & < 10 reviews/year), 97% of exchange platform listings are real homes, but only ~10% of Airbnb guest ratings involve plausibly personal residences, others are quasi-professional!
15/🧵
15/🧵
Why do people stick to the house exchange platform, even with worse terms of trade?
🤝 Exchange guests likely behave better – everyone has hosted themselves & knows the effort involved.
Guests expect a personal, not hotel-like experience. It's about respect & connection!
14/🧵
🤝 Exchange guests likely behave better – everyone has hosted themselves & knows the effort involved.
Guests expect a personal, not hotel-like experience. It's about respect & connection!
14/🧵
November 23, 2024 at 12:32 PM
Why do people stick to the house exchange platform, even with worse terms of trade?
🤝 Exchange guests likely behave better – everyone has hosted themselves & knows the effort involved.
Guests expect a personal, not hotel-like experience. It's about respect & connection!
14/🧵
🤝 Exchange guests likely behave better – everyone has hosted themselves & knows the effort involved.
Guests expect a personal, not hotel-like experience. It's about respect & connection!
14/🧵
Shouldn’t users with nice homes leave for Airbnb? If it was just about money, they should!
Hedonic ML model + scraped Airbnb data => Most users with fancy homes could make >500$ “for free” by doing same hosting/visiting combo on Airbnb (host 1x & visit comparable house 1x)
13/🧵
Hedonic ML model + scraped Airbnb data => Most users with fancy homes could make >500$ “for free” by doing same hosting/visiting combo on Airbnb (host 1x & visit comparable house 1x)
13/🧵
November 23, 2024 at 12:32 PM
Shouldn’t users with nice homes leave for Airbnb? If it was just about money, they should!
Hedonic ML model + scraped Airbnb data => Most users with fancy homes could make >500$ “for free” by doing same hosting/visiting combo on Airbnb (host 1x & visit comparable house 1x)
13/🧵
Hedonic ML model + scraped Airbnb data => Most users with fancy homes could make >500$ “for free” by doing same hosting/visiting combo on Airbnb (host 1x & visit comparable house 1x)
13/🧵
Wait…. but doesn’t rationing have side effects⁉️ Turns out, not here. The big price drop did not increase misallocation (actually, it slightly improved the match between home size and guest party size) and did not reduce affected hosts’ effort nor their participation! 😮
12/🧵
12/🧵
November 23, 2024 at 12:32 PM
Wait…. but doesn’t rationing have side effects⁉️ Turns out, not here. The big price drop did not increase misallocation (actually, it slightly improved the match between home size and guest party size) and did not reduce affected hosts’ effort nor their participation! 😮
12/🧵
12/🧵
Test prediction 2️⃣:
Exploit a big reform of pricing algorithm in a Diff-in-Diff event-study. Many fancy homes became much cheaper (>30%), others didn’t change much. The lower prices increased the supply of nice homes ❗ (usually, we’d think rent control reduces supply). Prediction 2 confirmed ✔️
11/🧵
Exploit a big reform of pricing algorithm in a Diff-in-Diff event-study. Many fancy homes became much cheaper (>30%), others didn’t change much. The lower prices increased the supply of nice homes ❗ (usually, we’d think rent control reduces supply). Prediction 2 confirmed ✔️
11/🧵
November 23, 2024 at 12:32 PM
Test prediction 2️⃣:
Exploit a big reform of pricing algorithm in a Diff-in-Diff event-study. Many fancy homes became much cheaper (>30%), others didn’t change much. The lower prices increased the supply of nice homes ❗ (usually, we’d think rent control reduces supply). Prediction 2 confirmed ✔️
11/🧵
Exploit a big reform of pricing algorithm in a Diff-in-Diff event-study. Many fancy homes became much cheaper (>30%), others didn’t change much. The lower prices increased the supply of nice homes ❗ (usually, we’d think rent control reduces supply). Prediction 2 confirmed ✔️
11/🧵
Sounds like a funny theory?
With the super detailed data I show that the same user hosts 5x less even at moderately high token wealth (enough for 30 nights in a nice home) compared to low wealth. People quickly become satiated with token money!
Prediction 1️⃣ confirmed ✔️
10/🧵
With the super detailed data I show that the same user hosts 5x less even at moderately high token wealth (enough for 30 nights in a nice home) compared to low wealth. People quickly become satiated with token money!
Prediction 1️⃣ confirmed ✔️
10/🧵
November 23, 2024 at 12:32 PM
Sounds like a funny theory?
With the super detailed data I show that the same user hosts 5x less even at moderately high token wealth (enough for 30 nights in a nice home) compared to low wealth. People quickly become satiated with token money!
Prediction 1️⃣ confirmed ✔️
10/🧵
With the super detailed data I show that the same user hosts 5x less even at moderately high token wealth (enough for 30 nights in a nice home) compared to low wealth. People quickly become satiated with token money!
Prediction 1️⃣ confirmed ✔️
10/🧵
💡 Intuition: Each person can only go on so many vacations. If my nice home earns a lot per booking, I’ll quickly have enough tokens for my own visits and stop hosting, because I can’t spend tokens on anything but visits. With lower prices, I need to host more often!
9/🧵
9/🧵
November 23, 2024 at 12:32 PM
💡 Intuition: Each person can only go on so many vacations. If my nice home earns a lot per booking, I’ll quickly have enough tokens for my own visits and stop hosting, because I can’t spend tokens on anything but visits. With lower prices, I need to host more often!
9/🧵
9/🧵
The model has 2 key predictions
1️⃣ Lower prices can increase the supply of nice homes
2️⃣ That happens when income effects are very strong
In this case, rationing also increases utilitarian welfare
8/🧵
1️⃣ Lower prices can increase the supply of nice homes
2️⃣ That happens when income effects are very strong
In this case, rationing also increases utilitarian welfare
8/🧵
November 23, 2024 at 12:32 PM
The model has 2 key predictions
1️⃣ Lower prices can increase the supply of nice homes
2️⃣ That happens when income effects are very strong
In this case, rationing also increases utilitarian welfare
8/🧵
1️⃣ Lower prices can increase the supply of nice homes
2️⃣ That happens when income effects are very strong
In this case, rationing also increases utilitarian welfare
8/🧵
Platform decides how many tokens to pay for big/nice vs. small/plain home. Should they clear the market as usual?
I develop a stylized model of exchange economy to guide the empirical analysis
✔️ endogenous budgets & supply
I Compare competitive equilibrium to rationing (think rent control)
7/🧵
I develop a stylized model of exchange economy to guide the empirical analysis
✔️ endogenous budgets & supply
I Compare competitive equilibrium to rationing (think rent control)
7/🧵
November 23, 2024 at 12:32 PM
Platform decides how many tokens to pay for big/nice vs. small/plain home. Should they clear the market as usual?
I develop a stylized model of exchange economy to guide the empirical analysis
✔️ endogenous budgets & supply
I Compare competitive equilibrium to rationing (think rent control)
7/🧵
I develop a stylized model of exchange economy to guide the empirical analysis
✔️ endogenous budgets & supply
I Compare competitive equilibrium to rationing (think rent control)
7/🧵
Study big online platform where 100,000+ homes are traded each year with token money.
🤩 Company gave me full database: every transaction & request over 10+ years
Surprisingly, I show there are more personal (not professional) family homes listed here than on Airbnb
6/🧵
🤩 Company gave me full database: every transaction & request over 10+ years
Surprisingly, I show there are more personal (not professional) family homes listed here than on Airbnb
6/🧵
November 23, 2024 at 12:32 PM
Study big online platform where 100,000+ homes are traded each year with token money.
🤩 Company gave me full database: every transaction & request over 10+ years
Surprisingly, I show there are more personal (not professional) family homes listed here than on Airbnb
6/🧵
🤩 Company gave me full database: every transaction & request over 10+ years
Surprisingly, I show there are more personal (not professional) family homes listed here than on Airbnb
6/🧵
This paper
1️⃣ With endogenous budgets & supply, pricing with tokens doesn’t work as in normal markets: Price controls & rationing can increase supply!
2️⃣ Many people strongly prefer token money, choosing it although they would be financially better off on for-money platforms
5/🧵
1️⃣ With endogenous budgets & supply, pricing with tokens doesn’t work as in normal markets: Price controls & rationing can increase supply!
2️⃣ Many people strongly prefer token money, choosing it although they would be financially better off on for-money platforms
5/🧵
November 23, 2024 at 12:32 PM
This paper
1️⃣ With endogenous budgets & supply, pricing with tokens doesn’t work as in normal markets: Price controls & rationing can increase supply!
2️⃣ Many people strongly prefer token money, choosing it although they would be financially better off on for-money platforms
5/🧵
1️⃣ With endogenous budgets & supply, pricing with tokens doesn’t work as in normal markets: Price controls & rationing can increase supply!
2️⃣ Many people strongly prefer token money, choosing it although they would be financially better off on for-money platforms
5/🧵
Literature so far:
- Proposes token money only when 💵 repugnant (oversubscribed classes, food donations)
- sets goods’ prices (in tokens) to clear markets
- only studied allocation problems (supply & token budgets exogenous) but not exchange economies
4/🧵
- Proposes token money only when 💵 repugnant (oversubscribed classes, food donations)
- sets goods’ prices (in tokens) to clear markets
- only studied allocation problems (supply & token budgets exogenous) but not exchange economies
4/🧵
November 23, 2024 at 12:32 PM
Literature so far:
- Proposes token money only when 💵 repugnant (oversubscribed classes, food donations)
- sets goods’ prices (in tokens) to clear markets
- only studied allocation problems (supply & token budgets exogenous) but not exchange economies
4/🧵
- Proposes token money only when 💵 repugnant (oversubscribed classes, food donations)
- sets goods’ prices (in tokens) to clear markets
- only studied allocation problems (supply & token budgets exogenous) but not exchange economies
4/🧵
Some real-world examples
🏡 Home exchanges: Host in your home to earn tokens, spend tokens to stay elsewhere
👶 Baby-sitting co-ops: babysit others’ kids to earn tokens, pay others to babysit yours
🏦 @FeedingAmerica, foodbanks bid tokens on national food donations
👩🎓 @_Coursematch (@ebudish)
…
3/🧵
🏡 Home exchanges: Host in your home to earn tokens, spend tokens to stay elsewhere
👶 Baby-sitting co-ops: babysit others’ kids to earn tokens, pay others to babysit yours
🏦 @FeedingAmerica, foodbanks bid tokens on national food donations
👩🎓 @_Coursematch (@ebudish)
…
3/🧵
November 23, 2024 at 12:32 PM
Some real-world examples
🏡 Home exchanges: Host in your home to earn tokens, spend tokens to stay elsewhere
👶 Baby-sitting co-ops: babysit others’ kids to earn tokens, pay others to babysit yours
🏦 @FeedingAmerica, foodbanks bid tokens on national food donations
👩🎓 @_Coursematch (@ebudish)
…
3/🧵
🏡 Home exchanges: Host in your home to earn tokens, spend tokens to stay elsewhere
👶 Baby-sitting co-ops: babysit others’ kids to earn tokens, pay others to babysit yours
🏦 @FeedingAmerica, foodbanks bid tokens on national food donations
👩🎓 @_Coursematch (@ebudish)
…
3/🧵
What is token money? A specialized, single-purpose currency.
🪙 You spend tokens on services within the community, no outside use.
🪙 Often, you need to earn tokens by contributing (e.g. babysitting, hosting guests, trade books, ...)
🪙 Can't buy/sell tokens for real money
2/🧵
🪙 You spend tokens on services within the community, no outside use.
🪙 Often, you need to earn tokens by contributing (e.g. babysitting, hosting guests, trade books, ...)
🪙 Can't buy/sell tokens for real money
2/🧵
November 23, 2024 at 12:32 PM
What is token money? A specialized, single-purpose currency.
🪙 You spend tokens on services within the community, no outside use.
🪙 Often, you need to earn tokens by contributing (e.g. babysitting, hosting guests, trade books, ...)
🪙 Can't buy/sell tokens for real money
2/🧵
🪙 You spend tokens on services within the community, no outside use.
🪙 Often, you need to earn tokens by contributing (e.g. babysitting, hosting guests, trade books, ...)
🪙 Can't buy/sell tokens for real money
2/🧵