TO RENT OR NOT TO RENT ON GAMEDAY42 Rami Casarda was a graduate student at Coastal University and the nominal head of a group of other grad students renting a house near the university's stadium, which has over 75,000 seats. With that capacity, you can imagine what gamedays at Coastal are like. The stadium is routinely sold out. Tailgate parties are everywhere. Porch parties from rental and owned houses spill out into front yards, and occasionally the street. Hotels in the town of 35,000 are sold out months in advance, and at their top prices of the year. The challenge for many has been finding a place to stay. Person-to-person (P2P) providers like Airbnb and specialty football weekend competitors like GamedayHousing.com offer renters and owners a chance to make a little extra money offering a bed or room in their place. For Rami's house, one room rented for the 7 two-night stays of the home games would provide the house $11,200 after fees, or four months of house rent. But they face challenges in two forms. One is legal. P2P ride services and overnight room rentals aren't legal in Coastal City. Police have ticketed Lyft and Uber drivers found on the road, but don't seem to have ticketed P2P rentals so far. But that said, there are only a few local listings on the P2P rental websites at this point. The other challenge is more local. It involves worst-case guests, known in the business as "game- day moochers." They don't have gameday tickets and instead go around to tailgate and porch parties, grabbing free beer and food for hours on end. When the moochers return, they're often very drunk and very rowdy. Some sites let you add a security deposit to the rental fees, and other sites offer additional insurance, but there remains the hassle of proving the case and dealing with the guest during the prob- lem period. There is also a back-of-the-mind fear that rowdy guests returning late at night will draw the ire of neighbors in what is usually, even on gamedays, a relatively quiet residential neighborhood. This could lead to strained relations with neighbors, or at the worst, neighbors calling the police, and ensuring a ticket for illegal room rentals. Rami and the housemates need to decide whether to list or not.CASE DISCUSSION QUESTIONS 1. What advice do the four philosophies (Golden Rule, utilitarianism, universalism, billboard principle) offer for Rami's thinking? 2. What is your thinking about how the legal and local challenges noted above drive the decision? Which should take precedence and why? 3. When entrepreneurship is disruptive, it often runs ahead of existing laws. If you were the entrepreneur behind a new P2P rental site, should you operate everywhere? Should you not accept new rental locations in areas where their service is illegal? Do you think you can figure out where it is legal and where it is not? Should you depend on those offering rentals to know if what they are doing is legal? What do the four questions defining a moral prob- lem tell you