Digital Discrimination: The Case of Airbnb

Michael Luca
Digital Discrimination: The Case of Airbnb.com (pdf)

Online marketplaces often contain information not only about products, but also about the people selling the products. In an effort to facilitate trust, many platforms encourage sellers to provide personal profiles and even to post pictures of themselves. However, these features may also facilitate discrimination based on sellers’ race, gender, age, or other aspects of appearance. In this paper, we test for racial discrimination against landlords in the online rental marketplace Airbnb.com. Using a new data set combining pictures of all New York City landlords on Airbnb with their rental prices and information about quality of the rentals, we show that non-black hosts charge approximately 12% more than black hosts for the equivalent rental. These effects are robust when controlling for all information visible in the Airbnb marketplace. These findings highlight the prevalence of discrimination in online marketplaces, suggesting an important unintended consequence of a seemingly-routine mechanism for building trust.

A postcard from 1968

I remember a long long time ago – in fact it was nearly fifty years ago I went with my family on a three week trip to Alice Springs and the Northern Territory. Dad didn’t spend much time with us as he was working while Mum, David and I tried to enjoy ourselves. Mum located a riding school and we went riding quite a few days. We went to the rock, where Mum, famous ever after in family culture, took one look at the climbing face of the rock and decided that if we stumbled and fell and lost hold of the single chain going up the rock, we might easily die. So we were forbidden from climbing the rock.

We were scandalised. In any event I still remember the trip quite well. Dad’s work meant nothing to me then but it was quite historic. It was work with two other academics – I think Colin Tatz and Sol Encel – on the likely consequences of giving aborigines equal pay.  The next year they got it of course, though it was never about their interests. They were not heard in the case and remained unrepresented. The white unions didn’t like competing against cut price labour.

In his part of the report focusing on economics, Dad concluded firstly that aborigines should be given equal pay, but also that demand for aboriginal labour would fall and so recommend support for aboriginal stockmen (I don’t know what kind, presumably the original documents can be located, but I don’t know where they’d be and I’ve not looked.) In the upshot Dad was (I expect) quite shocked to be attacked quite stridently as a racist. His saying that some aboriginal stockmen would lose their jobs was racist apparently.

Anyway, racist or not, he was right.

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All that was implicit was made explicit

Wendy Bacon Wendy_Bacon
Talk about clamping down on Pub Servants’ social media reminds me of how as journos we used to interview them before access to info stopped
10/04/2014 10:09 am

This tweet reminds me of something I’ve pondered for some time. The modern craze for making the implicit explicit. Its everywhere. Firms and other organisations didn’t have mission statements for most of time, and then began acquiring them starting around the 1980s(?).

Were firms hopelessly adrift before then? We introduced Freedom of Information legislation (about a decade behind the US) in the Fraser years. Has freedom of information improved. Well it’s hard to say – one’s formal rights to information have improved vastly – we had barely any before legislation like the Fraser Government’s legislation and its more recent replacement. And yet journos could ring up public servants and find out what was happening. There would have been strong (implicit) codes of conduct. Public servants wouldn’t be ‘outed’. They would likely have expressed personal views without having to explicitly go ‘on’ and ‘off’ the record as they talked.

Yet we are in a world where government is endlessly performed. And in this world the performer finds the velvet glove of formal transparency requirements the perfect accoutrement to the iron fist inside – the instinct for concealment. Today in most organisations any contact with the media will go through communications people who are trained not to answer questions. And who can blame the organisations? For on the other end of the phone acknowledge little common interest with those they interview beyond the commonplace narcissism which they may share with, or project onto their interviewee. The journalist on the other end is after something to entertain – a ‘story’ – not an explanation of what’s happening.  As Malcolm Turnbull puts it engagingly, they’re the hounds, he’s the fox, their job is to find and kill him and his job is to stay alive.

But the thing I always think of when I think of our mania for making things explicit is disability.  There are any number of ‘rights’ we’ve given the disabled. And we’ve done great things compared to what went before. We’ve made buildings, car parks, all manner of things more accessible to the disabled. We’ve passed laws to prevent discrimination against the disabled. But before all that, in a old world where there was no transparency,  the press engaged in a conspiracy of concealment – but one that was on behalf of the common good, of good government. Remarkably – it’s so far from our current circumstances I must say I can barely imagine it – in a world recognisably modern, in a world full of gutter journalism and dirty political tricks, no-one let on that Franklin Delano Roosevelt was a paraplegic. Continue reading

Operation 2770: TACSI’s Family by Family expands to Mt Druitt

Family by Family about which Troppodillians have heard before is spreading its wings. We’ve started in Mt Druitt where we’ve scoped the program which means investigating how it should be changed to optimise it to the local community. Here’s the Scoping Report which I think makes interesting reading.

Anyway we launched the scoping report with the Minister who’d commissioned us to establish the program – Pru Goward. And here’s my speech at the function. One thing that got my attention was the fact that, according to the scoping report, quite a few people from the area have tattoos of the postcode. And the supporters of Greater Western Sydney take signs of their postcodes to fixtures against Sydney Football Club – which is now more explicitly the team from the leafy suburbs.

Here also is the audio of a recent interview on this by Alex Sloan.

Notes for a Speech by Nicholas Gruen, Chairman of the Australian Centre for Social Innovation at the launch of the Family by Family Scoping Report for Mt Druitt, 12th March, 2014

I

Welcome to our modest function at Postcode 2770

Still, I’m reliably informed that from little things big things grow.

These are the words of Mystic (pronounced Mystique). She’s 21 now but was in out of home care since she was 3.

It happened so quickly. Once I turned 18, they sort of kicked me on my arse. They said ‘here’s $750, see you later, thank you’. And I’m just like ‘what the hell?’. A book and $750. That’s for being in care all your life.

Actually it makes you feel like an outsider. It makes you feel non existent on this earth. Like you are an alien. It does. It affects when you go to school too. You’re so used to being called ‘client’ and stuff that you start looking at yourself different to everyone else.

This example is not from NSW, but it’s not such an extreme example for those who know the system. And this is after what must be a decade, perhaps two of talking about “citizen centric services”!

II

Family by Family is different.

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The other Berlin Wall that came down: The collapse of communism and the spread of ideas

Book Translations as Idea Flows: The Effects of the Collapse of Communism on the Diffusion of Knowledge
by Ran Abramitzky, Isabelle Sin

Abstract:

We use book translations as a new measure of international idea flows and study the effects of Communism’s collapse in Eastern Europe on these flows. Using novel data on 800,000 translations and difference-in-differences approaches, we show that while translations between Communist languages decreased by two thirds with the collapse, Western-to-Communist translations increased by a factor of four and quickly converged to Western levels. Convergence was more pronounced in the fields of applied and social sciences, and was more complete in Satellite and Baltic than in Soviet countries. We discuss how these patterns help us understand how repressive institutions and preferences towards Western European ideas shaped the international diffusion of knowledge.

What’s wrong with TED talks – hint: quite a lot

I have almost certainly fulminated in various asides against TED talks on this blog, and even one full on cri de coeur against retail profundification. (I promised one on business class profundification but I haven’t managed to do it yet.

Anyway, a friend sent me this TEDx talk which is about what’s wrong with TED Talks. It’s terrific. Indeed, if you want to watch it you can, but you can also see the text of the speech reproduced on the speaker’s website and in the Guardian. It’s always annoyed me that transcripts aren’t provided as a matter of course. They save a lot of time.

My favourite quote on economics:

Our options for change range from basically what we have plus a little more Hayek, to what we have plus a little more Keynes. Why?

Enjoy.

German Film Festival

Here are the top picks from the German Film Festival in Melbourne, with the full schedule below.

After the partner of a policeman is killed he is drawn into a mysterious plot of conspiracy and terrorists.
☆☆☆☆ IMDB
When two brothers meet in their family’s isolated house on the coast, previously unresolved issues and tensions are revealed. Marten wants to pick up their jailed mother when she is released after killing their abusive father a few years ago, while Volker cannot forgive the way he was treated by his father and only wants to sell the house and forget the past.
☆☆☆☆ IMDB
An elderly couple, married for 62 years, subtly interviewed by their son, reflecting on their marriage leading to surprises how these two got married in the first place.
☆☆☆☆ IMDB
Florian is an overweight teenage boy, adored by his mother and abhorred by his macho father. He loves disco music and dressing up in the appropriate clothing. Yet his life undergoes a transformation when his mother has a stroke. How will he and his father get on?
☆☆☆☆ IMDB
The darker side of human interaction is revealed in this drama about a group of people that seem to be pursued by bad luck. As the individual storyline develop, a decidedly dark humor pervades the film, revealing a warped view of human existence.
☆☆☆☆ IMDB
With her husband leaving, Silvi finally realizes that her rather dull marriage has failed. The 47-year-old woman, now lost and lonely, but also driven by the desire to not be alone, she decides to start over again.
☆☆☆☆ IMDB
The documentary explores the role athletes played in the GDR, particularly during the 1960s and 1970s when East Germany was a major competitor at the Olympic Games. The film focuses on the intensive sports program with which the athletes, who were treated like heroes, were involved.
☆☆☆☆ IMDB
Justus Neumann revisits Karl Kraus’ satire The Last Days of Mankind (1918) in an inspiring lecture about the absurdity of war and the mistakes that mankind seems to be repeating throughout history.
☆☆☆☆ Good Reads

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