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Innovation consequences: it’s complicated

In Airbnb and the Unintended Consequences of ‘Disruption’ Derek Thompson uses Airbnb as an example to explain how it’s not as easy to call tech innovation a good or a bad thing. It’s complicated…

Airbnb lowered prices for tourists, supplemented the income of renters, and simply made travel to major cities more fun. But upon inspection, it shares some things in common with more-controversial companies—albeit with less grave implications. Facebook and Twitter design for attention, but incidentally encourage mendacious outrage and trolling. eBay and Amazon design for open marketplaces, but incidentally encourage the frenzied resale of bulk-ordered toys around Christmas. Airbnb was supposed to challenge hotels by letting tourists pay renters. But its platform is unwittingly producing a subsidy of tourists, paid for by nonparticipating urban dwellers, who bear the cost of higher rental prices.