Airbnb: The Pareto Optimality Theory

1913 Words 8 Pages
Define the Complete Moral Problem:
Step 1: State the Moral Problem
Is the operation of Airbnb ethically permissible, given that this online marketplace offers travelers, from over 191 countries, unique and cheaper alternatives to hotels, allows host to make extra money for their mortgage or other necessities, benefits economies around the world by helping local businesses and causing the flow of cash throughout the area, which are all arguments that Airbnb and it’s board of directors offers, while at the same time previously failing to protect hosts from property damage, having no definite policy regarding privacy as most evidenced by no ban on the filming of guests, facilitating racial discrimination with little accountability, negatively
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This theory refers to the net balance of benefit and costs considering the affects on the entire society. Benefits of Airbnb include high profits, providing cheap alternatives, allowing hosts to make money, and flowing cash through economies, while costs include poor consumer protection and engaging in unfair competition with the hospitality industry. The issues that Airbnb have cannot be resolved by simply maximizing profits because maximizing profit solely benefits Airbnb. Most of the victims of Airbnb’s issues such as consumers, competitors, and the governments will not gain anything from Airbnb raising a high profit. Airbnb’s concerns do not revolve around the individuals that would gain from higher profits, such as employees or the board of …show more content…
For example, some cities completely ban the renting of spaces for a short period through Airbnb. Other cities require hosts to attain permits or licenses before using Airbnb. Another legal requirement for hosts and guests to consider involve taxes. This requirement also varies as different jurisdictions have different tax requirements on hosts and guests. These legal requirements highlight a problem with the law around Airbnb which is inarticulate representation. Airbnb’s corporation slogan is ‘belong anywhere’, however this does not appear to be the case as many location have guidelines that Airbnb fails to articulate properly to their consumer. This results in a consumer, both a host or a guest, having to deal with unwelcomed taxes or legal consequences. This issue can also be classified as inconsistent formulation as Airbnb can not promise the same experience for one location for another, resulting in confusion. Moral problems that Airbnb have, such as consumer protection, cannot be solved legally as Airbnb has protected themselves from consequences from this moral problem through the legal system. They have protected themselves from racial discrimination accusations with fine print in their terms that prohibit individuals from bringing a civil suit against the company. Fine print is also involved with certain property damages that are not protected by the company as well as

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