Market size, service quality and competition in the US downhill ski industry

James G. Mulligan ()

Applied Economics Letters, 2011, vol. 18, issue 15, pages 1497-1500

Abstract: Using a two-sector model of congestion, I explain theoretically how lower travel costs and increased consumer income over time resulted in endogenous investment in quality and higher real prices at both national and local ski resorts despite limited market entry. I also provide empirical evidence for the US ski industry in support of the implications of the model.

Date: 2011
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