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Substitution between online distribution channels: Evidence from the Oslo hotel market

Arthur Cazaubiel, Morgane Cure, Bjørn Olav Johansen and Thibaud Vergé

International Journal of Industrial Organization, 2020, vol. 69, issue C

Abstract: Using an exhaustive database of bookings in one large chain of hotels active in Oslo (2013-2016), we estimate a nested-logit demand model that allows us to evaluate substitution patterns between online distribution channels. Making use of the chain’s decision to delist from Expedia’s platform, we compare the simulated and actual effects of such an event on prices and market shares and identify ways to improve on simulated counterfactual outcomes.

Keywords: Multi-channel distribution; Pricing; Structural demand estimation; Online substitution (search for similar items in EconPapers)
JEL-codes: D22 D43 L11 L81 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:69:y:2020:i:c:s0167718719301055

DOI: 10.1016/j.ijindorg.2019.102577

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