As we all know Airbnb matches people who are looking for temporary housing with hosts that would like to rent out their place for a specific period of time. The host can reject or accept the request depending on his preferences. To be able to do that Airbnb uses an algorithm similary to the one of Gale and Shapley’s; the assumptions that they use are: there is an equal number of hosts and guests, the hosts sort the guests by preference, no host prefers to leave their house empty, and every guest wants a room (they can’t be homeless).
Host maximize his profits and also cares about guests staying the most posible time.
However, this algorithm doesn’t satisfy an important feature; it’s not strategy-proof, therefore guests can be willing to lie about the time they are staying to get a better match.
For instance, a host who rents out for at least 4 days. The guest who wants to stay in that property can lie and say that they will stay for that period of time and then simply leave early. This effects their rating, but many people just create new accounts for next time.
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