Biased Listing in Electronic Marketplaces - Evidence from the Online Hotel Distribution
نویسندگان
چکیده
In this study we investigate the phenomenon of biased listing. Biased listing describes the practice of listing items in search engines or market platforms according to criteria other than the normally expected ones (e.g. relevance or quality). We were able to access real booking data from the hotel distribution platform provider Hotel.de. Hotel.de offers different contract types that have a direct impact on the ranking of hotels in the search results pages presented to customers. By carrying out comparisons of hotel bookings before and after switching contract types we are able to show that biased listing has a significant impact on the number of bookings a hotel is able to draw from the platform. Our findings have implications for the market participants. For example, market providers, by engaging in practices of biased listing, are able to exploit their gatekeeper position by making hotels compete for listing positions on the platform.
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