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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 ()
Additional contact information
Arthur Cazaubiel: CREST, ENSAE ParisTech, http://cazaubiel.com/
Morgane Cure: CREST, ENSAE ParisTech, http://www.crest.fr/ses.php?user=3481
Bjørn Olav Johansen: University of Bergen, Department of Economics, Postal: Institutt for økonomi and BECCLE, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway, https://www.uib.no/en/persons/Bj%C3%B8rn.Olav.Johansen
Thibaud Vergé: CREST, ENSAE ParisTech and University of Bergen, Department of Economics, http://www.crest.fr/ses.php?user=3072

No 8/18, Working Papers in Economics from University of Bergen, Department of Economics

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 chains’ decision to delist from Expedia’s platform, we can then compare 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)
New Economics Papers: this item is included in nep-com, nep-eur and nep-pay
Date: 2018-08-01
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