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The junction of economy, law and technology is an important topic in the world that is increasingly moving online. Digital platforms “match” supply and demand by using large amounts of data and algorithms. Some digital platforms dominate travel markets because of platforms’ data and networks effects. Digital platforms in travel industry use algorithms to generate suggestions to consumers via recommendation (ranking) systems. Ranking has important implications not only for business users of digital platforms, but for consumers’ choice as well. This research explores motivations to participate in digital platforms for short-term vacation rental and it sheds light on information asymmetries in regard to algorithms generating ranking in search results. This research also briefly explores EU regulatory approach to digital platforms and looks at the latest EU legal texts in regard to fairness and transparency in ranking.

INFORMATION ASYMMETRIES IN ALGORITHMS AT DIGITAL PLATFORMS: MOTIVATIONS TO PARTICIPATE AND EU REGULATORY APPROACH