Can mergers increase output? Evidence from the lodging industry.
We find that hotel mergers increase occupancy. In some specifications, price also rises. Because these effects occur only in markets with high capacity utilization and high uncertainty, we reject simple models of price or quantity competition in favor of models of 'revenue management,' where firms p...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 48; no. 1; pp. 178 - 203 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Spring2017
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | We find that hotel mergers increase occupancy. In some specifications, price also rises. Because these effects occur only in markets with high capacity utilization and high uncertainty, we reject simple models of price or quantity competition in favor of models of 'revenue management,' where firms price to fill available capacity in the face of uncertain demand. |
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