Higher prices make a lot of sense. Airbnb provides a level of vetting and feedback that adds a lot of value and security to both sides. It's easy to scam someone on craigslist when there's no reputation system.
No it doesn't, I've been scammed as a renter on Airbnb and people have been scammed as hosts. The increased cost comes from the market transition from "let's help eachother while we're both on vacation" to "Come stay at my apartment while I stay at my friends place and make half my rent from you over the weekend."
