Does Competition Benefit Complements? Evidence from Airlines and Hotels

• 成果类型: Article
• 署名作者: Forbes, Silks J.; Kosova, Renata
• 署名单位: Tufts University; Imperial College London
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.4568
• 发表日期: 2023
• 页码: 4733-4752
• 关键词: competition; spillovers; complements

摘要

We analyze how changes in the market structure of one industry-airlines-affect the performance of firms in a complementary industry-hotels-using an instrumental variables strategy to account for potential correlation between unobserved shocks to both markets. We find that more intense airline competition boosts hotel performance across all standard measures: price, occupancy rate, and revenue per available room. Spillovers vary across hotel quality and passenger type: Lower-quality branded hotels serving more price-sensitive travelers, most likely brought into the market because of more intense airline competition, benefit the most. However, performance spillovers do not translate into higher hotel entry.