Why Don't You Two Get a Room? A Puzzle and Pricing Model of Extra Services in Hotels

Damian Damianov and Shane Sanders

Journal of Industrial Organization Education, 2012, vol. 6, issue 1, 7

Abstract: This case study focuses on the following �rational riddle� raised in a recent popular economics book: Hotels in Britain usually charge per guest while hotels in the US typically charge per room. What is the reason for this difference? We propose a pricing model for extra services which points to one possible explanation.

Keywords: marginal pricing; price discrimination; self-disclosure of customer type (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:jioedu:v:6:y:2012:i:1:p:1-7:n:1

DOI: 10.1515/1935-5041.1035

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