1. Substitution between online distribution channels: Evidence from the Oslo hotel market
- Author
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Morgane Cure, Thibaud Vergé, Bjørn Olav Johansen, and Arthur Cazaubiel
- Subjects
Counterfactual thinking ,Economics and Econometrics ,business.industry ,Event (computing) ,Strategy and Management ,05 social sciences ,Economics, Econometrics and Finance (miscellaneous) ,Substitution (logic) ,Distribution (economics) ,0502 economics and business ,Industrial relations ,Econometrics ,Business ,050207 economics ,Market share ,050205 econometrics - 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.
- Published
- 2020
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