The Price Effects of Prohibiting Price Parity Clauses: Evidence from International Hotel Groups

Jack (Peiyao) Ma, Andrea Mantovani, Carlo Reggiani, Annette Broocks and Néstor Duch-Brown
Authors registered in the RePEc Author Service: Néstor Duch Brown

No 1043, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: Dominant platforms such as Booking.com and Amazon often impose Price Parity Clauses to prevent sellers from charging lower prices on alternative sales channels. We provide quasi experimental evidence on the removal of these price restrictions in France in 2015 for three major international hotel groups. First, our analysis reveals limited and non-significant effects on room prices sold through channels visible to consumers, such as the hotels’ websites or Online Travel Agencies. Second, we document a significant price reduction on sales channels not visible to consumers, such as the hotels’ direct offline channel. Third, we identify a significant shift in sales share from online travel agencies to the hotels’ direct offline channel.

Date: 2024-04-10
New Economics Papers: this item is included in nep-com, nep-pay and nep-reg
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