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and you think that disproves the point? an efficiency in a market can grow the market so it is more applicable to simply assume it is "blatantly true" until yo
by cloudjacker 10y ago
and you think that disproves the point? an efficiency in a market can grow the market
so it is more applicable to simply assume it is "blatantly true" until you prove it isn't, as well as find all of the incumbents that were obliterated
- adevine 10y agoI think adventured was responding to your statement "the simple fact is you can't build a unicorn business by taking market share from other businesses" when he said it was blatantly false, NOT that it's not also possible to expand the market. And I think there are plenty of examples of businesses that did become huge by decimating existing players that there is enough data to say you can become a unicorn just by stealing market share. In AirBnB's case, the only way it can really grow the market is by providing an efficiency that didn't exist before, and in that respect it clearly has: apartments, houses or spare rooms that used to sit empty when the owner was away can now be put to use through AirBnB. That said, I think it's naive to look at AirBnB's cherry picked data and not think they are having some marketshare impact on hotels, especially on the budget side where AirBnB is clearly a substitute good (think Motel 6 vs AirBnb).
- cloudjacker 10y agowasn't my parent comment but in any case I am genuinely curious. I can see the conflict of getting data only from AirBnB. But perhaps prices simply reached an equilibrium. For example, there was a time when I could count on AirBnB being MUCH cheaper than hotels. Now they are about the same in most areas I look in. I can also see some hotels having less variance in their prices during certain time periods.