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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, 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.

Date: 2012
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