Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Bergen, Department of Economics
No 8/18: 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
Morgane Cure: CREST, ENSAE ParisTech
Bjørn Olav Johansen: University of Bergen, Department of Economics, Postal: Institutt for økonomi and BECCLE, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Thibaud Vergé: CREST, ENSAE ParisTech and 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
38 pages, August 1, 2018
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