Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry
Agglomeration is a location pattern frequently observed in service industries such as hotels. This paper empirically examines if agglomeration facilitates tacit collusion in the lodging industry using a quarterly dataset of hotels that operated in rural areas across Texas between 2003 and 2005. We j...
| Main Authors: | , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
National Bureau of Economic Research
2011
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/154653 |
| _version_ | 1855522067662766080 |
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| author | Hernandez, Manuel A. Gan, Li |
| author_browse | Gan, Li Hernandez, Manuel A. |
| author_facet | Hernandez, Manuel A. Gan, Li |
| author_sort | Hernandez, Manuel A. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Agglomeration is a location pattern frequently observed in service industries such as hotels. This paper empirically examines if agglomeration facilitates tacit collusion in the lodging industry using a quarterly dataset of hotels that operated in rural areas across Texas between 2003 and 2005. We jointly model a price and occupancy rate equation under a switching regression model to endogenously identify a collusive and non-collusive regime. The estimation results indicate that clustered hotels have a higher probability of being in the potential collusive regime than isolated properties in the same town. The identification of a collusive regime is also consistent with other factors considered to affect the sustainability of collusion like cluster size, seasonality and firm size, and the results are robust to alternative cluster definitions. |
| format | Artículo preliminar |
| id | CGSpace154653 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | National Bureau of Economic Research |
| publisherStr | National Bureau of Economic Research |
| record_format | dspace |
| spelling | CGSpace1546532024-10-25T07:55:31Z Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry Hernandez, Manuel A. Gan, Li agglomerating service industry Agglomeration is a location pattern frequently observed in service industries such as hotels. This paper empirically examines if agglomeration facilitates tacit collusion in the lodging industry using a quarterly dataset of hotels that operated in rural areas across Texas between 2003 and 2005. We jointly model a price and occupancy rate equation under a switching regression model to endogenously identify a collusive and non-collusive regime. The estimation results indicate that clustered hotels have a higher probability of being in the potential collusive regime than isolated properties in the same town. The identification of a collusive regime is also consistent with other factors considered to affect the sustainability of collusion like cluster size, seasonality and firm size, and the results are robust to alternative cluster definitions. 2011 2024-10-01T14:02:56Z 2024-10-01T14:02:56Z Working Paper https://hdl.handle.net/10568/154653 en Limited Access National Bureau of Economic Research Hernandez, Manuel A.; Gan, Li. 2011. Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry. https://doi.org/10.3386/w16739 |
| spellingShingle | agglomerating service industry Hernandez, Manuel A. Gan, Li Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry |
| title | Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry |
| title_full | Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry |
| title_fullStr | Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry |
| title_full_unstemmed | Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry |
| title_short | Making friends with your neighbors: Agglomeration and tacit collusion in the lodging industry |
| title_sort | making friends with your neighbors agglomeration and tacit collusion in the lodging industry |
| topic | agglomerating service industry |
| url | https://hdl.handle.net/10568/154653 |
| work_keys_str_mv | AT hernandezmanuela makingfriendswithyourneighborsagglomerationandtacitcollusioninthelodgingindustry AT ganli makingfriendswithyourneighborsagglomerationandtacitcollusioninthelodgingindustry |