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Quality Externalities among Hotel Establishments: What is the Impact of Tour Operators

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Author Info

  • Aleix Calveras

    (Universitat de les Illes Balears)

  • Marcos Vera-Hernandez

    (University College London)

Abstract

This paper is about quality decisions in a vertical structure where competitive producers sell to powerful retailers. Specifically, we focus the analysis on the role played by a tour operator on quality investments when distributing the capacity of a given tourist destination. We emphasize the presence of quality externalities among hotel establishments, and see that sometimes a Tour Operator distribution can provide a solution to the "tragedy of the commons' in quality provision. Thus, we analyze what implications do vertical relations have for quality in this industry, and then derive some policy recommendations

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File URL: http://128.118.178.162/eps/io/papers/0303/0303001.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0303001.

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Length: 25 pages
Date of creation: 05 Mar 2003
Date of revision:
Handle: RePEc:wpa:wuwpio:0303001

Note: Type of Document - Acrobat PDF; prepared on IBM PC - PC-TEX/; to print on PostScript; pages: 25 ; figures: none
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Web page: http://128.118.178.162

Related research

Keywords: vertical relations; externalities; tragedy of commons; tourism; hotel industry;

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References

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  1. Matutes, Carmen & Vives, Xavier, 1996. "Competition for Deposits, Fragility, and Insurance," Journal of Financial Intermediation, Elsevier, vol. 5(2), pages 184-216, April.
  2. Biglaiser, Gary & Friedman, James W., 1994. "Middlemen as guarantors of quality," International Journal of Industrial Organization, Elsevier, vol. 12(4), pages 509-531, December.
  3. Rey, Patrick & Tirole, Jean, 2007. "A Primer on Foreclosure," Handbook of Industrial Organization, Elsevier.
  4. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  5. Admati, Anat R. & Pfleiderer, Paul, 1986. "A monopolistic market for information," Journal of Economic Theory, Elsevier, vol. 39(2), pages 400-438, August.
  6. Patrick Rey & Jean Tirole, 1985. "The Logic of Vertical Restraints," Working papers 396, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Luís M. B. Cabral, 2000. "Introduction to Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262032864, December.
  8. Admati, Anat R & Pfleiderer, Paul, 1990. "Direct and Indirect Sale of Information," Econometrica, Econometric Society, vol. 58(4), pages 901-28, July.
  9. Alessandro Lizzeri, 1999. "Information Revelation and Certification Intermediaries," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 214-231, Summer.
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Cited by:
  1. Mahbuba Alieva, 2010. "Uzbek Travel Services Industry And International Comparison," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 6(3), pages 66-70, October.
  2. Guido Candela & Paolo Figini, 2010. "Destination Unknown. Is there any Economics Beyond Tourism Areas?," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 2(3), pages 256-271, September.

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