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

Aleix Calveras and Marcos Vera-Hernandez ()
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Aleix Calveras: Universitat de les Illes Balears

Industrial Organization from EconWPA

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

Keywords: vertical relations; externalities; tragedy of commons; tourism; hotel industry (search for similar items in EconPapers)
JEL-codes: L15 L22 L89 (search for similar items in EconPapers)
Date: 2003-03-05
Note: Type of Document - Acrobat PDF; prepared on IBM PC - PC-TEX/; to print on PostScript; pages: 25 ; figures: none
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpio:0303001

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