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“Petit Déjeuner Compris†– Is It Really Free? Evidence from French and Italian Hotels

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  • Johnson, George E.

Abstract

Despite the old claim in economics that “there is no such thing as a free lunch,†some of the recent work in behavioral economics and in other fields of study implies the contrary. In this paper I study whether French and Italian hotels actually provide a “free†breakfast when, as is done by many hotels around the world, its provision is included in the room price. The data indicate, using both cross-sectional comparisons and hotel-specific changes in breakfast provision, that there is no such thing as a free breakfast. In France and Italy hotels that offer, respectively, “petit dejeuner compris†and “compresa la prima colazione†appear to raise their room prices by 10 to 15 percent.

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  • Johnson, George E., 2007. "“Petit Déjeuner Compris†– Is It Really Free? Evidence from French and Italian Hotels," Journal of Wine Economics, Cambridge University Press, vol. 2(1), pages 2-23, April.
    • Handle: RePEc:cup:jwecon:v:2:y:2007:i:01:p:2-23_00
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