Mergers Increase Output When Firms Compete by Managing Revenue
نویسندگان
چکیده
We find that hotel mergers increase occupancy. In some specifications, price also rises. These effects occur only in markets with high capacity utilization and high uncertainty. These findings lead us to reject simple models of price or quantity competition in favor of models of “revenue management,” where firms price to fill available capacity in the face of uncertain demand. JEL classification: D21; L41; L83.
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