Regulations in the Sharing Economy

http://business.time.com/2013/10/07/airbnbs-woes-show-how-far-the-sharing-economy-has-come/

After New York city tried to get a peer to peer lodging service to pay hotel taxes, the companies are responding positively. Airbnb, one of the biggest peer to peer sites, initially said that the laws were outdated and refused to make clients pay the hotel taxes. Now Airbnb has reversed their stance and is now cooperating with the hotel tax. People who rent rooms in New York on Airbnb will now have to add 14% on to their bill at the end of their stay.

I think that it is good for Airbnb to cooperate with New York city. If not they might have lawsuits on their hands and that would look bad for them. Airbnb will still do a fair amount of traffic and I do not think it will effect their number of clients. I think that peer to peer sites like this one should be utilized more for a different "hotel" experience.