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Substitution between online distribution channels: Evidence from the Oslo hotel market

Author

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  • Cazaubiel, Arthur
  • Cure, Morgane
  • Johansen, Bjørn Olav
  • Vergé, Thibaud

Abstract

Using an exhaustive database of bookings in one large chain of hotels active in Oslo (2013-2016), we estimate a nested-logit demand model that allows us to evaluate substitution patterns between online distribution channels. Making use of the chain’s decision to delist from Expedia’s platform, we compare the simulated and actual effects of such an event on prices and market shares and identify ways to improve on simulated counterfactual outcomes.

Suggested Citation

  • Cazaubiel, Arthur & Cure, Morgane & Johansen, Bjørn Olav & Vergé, Thibaud, 2020. "Substitution between online distribution channels: Evidence from the Oslo hotel market," International Journal of Industrial Organization, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:indorg:v:69:y:2020:i:c:s0167718719301055
    DOI: 10.1016/j.ijindorg.2019.102577
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    Cited by:

    1. Bisceglia, Michele & Padilla, Jorge & Piccolo, Salvatore, 2021. "When prohibiting wholesale price-parity agreements may harm consumers," International Journal of Industrial Organization, Elsevier, vol. 76(C).
    2. Renato Gomes & Andrea Mantovani, 2020. "Regulating Platform Fees under Price Parity," Working Papers 20-09, NET Institute.
    3. Olga Orynycz & Karol Tucki, 2021. "Total Productive Maintenance Approach to an Increase of the Energy Efficiency of a Hotel Facility and Mitigation of Water Consumption," Energies, MDPI, vol. 14(6), pages 1-21, March.
    4. Schlütter, Frank, 2022. "Managing Seller Conduct in Online Marketplaces and Platform Most-Favored Nation Clauses," LIDAM Discussion Papers CORE 2022026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Morgane Cure & Matthias Hunold & Reinhold Kesler & Ulrich Laitenberger & Thomas Larrieu, 2022. "Vertical integration of platforms and product prominence," Quantitative Marketing and Economics (QME), Springer, vol. 20(4), pages 353-395, December.
    6. Mantovani, Andrea & Piga, Claudio A. & Reggiani, Carlo, 2021. "Online platform price parity clauses: Evidence from the EU Booking.com case," European Economic Review, Elsevier, vol. 131(C).

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    More about this item

    Keywords

    Multi-channel distribution; Pricing; Structural demand estimation; Online substitution;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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