MAKING FRIENDS WITH YOUR NEIGHBORS? AGGLOMERATION AND TACIT COLLUSION IN THE LODGING INDUSTRY

• 成果类型: Article
• 署名作者: Gan, Li; Hernandez, Manuel A.
• 署名单位: Texas A&M University System; Texas A&M University College Station; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00289
• 发表日期: 2013-07
• 页码: 1002-1017
• 关键词: cartel stability; market power; price; COMPETITION; number; entry; MODEL

摘要

Agglomeration is a location pattern frequently observed in service industries such as hotels. This paper empirically examines whether agglomeration facilitates tacit collusion in the lodging industry using a quarterly data set of hotels in Texas. We jointly model a price and occupancy rate equation under a switching regression model to identify a collusive and noncollusive 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 tacit collusion.