IDEAS home Printed from https://ideas.repec.org/a/eee/anture/v93y2022ics0160738322000172.html
   My bibliography  Save this article

Social influence and bandwagon effects in tourism travel

Author

Listed:
  • Boto-García, David
  • Baños-Pino, José Francisco

Abstract

This paper studies bandwagon effects in tourism travel decisions. We examine how social influence affects individual decisions (i) to take a vacation trip, and (ii) the choice of destination. We use representative microdata for 28 European countries between 2014 and 2016 involving more than 60,000 individuals. Our empirical model accounts for the potential endogeneity of the social influence effect using a control function approach. Our results show that tourism participation and abroad travelling exhibit bandwagon effects: both are positively influenced by the share of people in the region of residence (NUTS 2) that also travels and that travels abroad. We also find that (i) bandwagon effects are heterogeneous across countries, and (ii) social effects are larger among non-travellers in the previous year.

Suggested Citation

  • Boto-García, David & Baños-Pino, José Francisco, 2022. "Social influence and bandwagon effects in tourism travel," Annals of Tourism Research, Elsevier, vol. 93(C).
  • Handle: RePEc:eee:anture:v:93:y:2022:i:c:s0160738322000172
    DOI: 10.1016/j.annals.2022.103366
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160738322000172
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.annals.2022.103366?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bianchi, Constanza & Milberg, Sandra & Cúneo, Andres, 2017. "Understanding travelers' intentions to visit a short versus long-haul emerging vacation destination: The case of Chile," Tourism Management, Elsevier, vol. 59(C), pages 312-324.
    2. Thorstein Veblen, 1899. "Mr. Cummings's Strictures on "The Theory of the Leisure Class"," Journal of Political Economy, University of Chicago Press, vol. 8(1), pages 106-106.
    3. Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Rajshri Jayaraman, 2015. "Linear Social Interactions Models," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 444-496.
    4. Kerwin Kofi Charles & Erik Hurst & Nikolai Roussanov, 2009. "Conspicuous Consumption and Race," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 425-467.
    5. Laurent Davezies & Xavier D'Haultfoeuille & Denis Fougère, 2009. "Identification of peer effects using group size variation," Econometrics Journal, Royal Economic Society, vol. 12(3), pages 397-413, November.
    6. Adriaan R. Soetevent, 2006. "Empirics of the Identification of Social Interactions; An Evaluation of the Approaches and Their Results," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 193-228, April.
    7. Alessie, Rob & Kapteyn, Arie, 1991. "Habit Formation, Interdependent References and Demographic Effects in the Almost Ideal Demand System," Economic Journal, Royal Economic Society, vol. 101(406), pages 404-419, May.
    8. R. Duarte & J. Escario & J. Molina, 2014. "Are estimated peer effects on smoking robust? Evidence from adolescent students in Spain," Empirical Economics, Springer, vol. 46(3), pages 1167-1179, May.
    9. Edward C. Norton & Richard C. Lindrooth & Susan T. Ennett, 1998. "Controlling for the endogeneity of peer substance use on adolescent alcohol and tobacco use," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 439-453, August.
    10. Yannis Ioannides, 2006. "Topologies of social interactions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(3), pages 559-584, August.
    11. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    12. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    13. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    14. Kapteyn, Arie & Wansbeek, Tom & Buyze, Jeannine, 1980. "The dynamics of preference formation," Journal of Economic Behavior & Organization, Elsevier, vol. 1(2), pages 123-157, June.
    15. Kapteyn, Arie, et al, 1997. "Interdependent Preferences: An Econometric Analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(6), pages 665-686, Nov.-Dec..
    16. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    17. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    18. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2010. "An analysis of households' appraisal of their budget constraints for potential participation in tourism," Tourism Management, Elsevier, vol. 31(1), pages 45-56.
    19. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    20. Gustavo J. Bobonis & Frederico Finan, 2009. "Neighborhood Peer Effects in Secondary School Enrollment Decisions," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 695-716, November.
    21. Alejandro Gaviria & Steven Raphael, 2001. "School-Based Peer Effects And Juvenile Behavior," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 257-268, May.
    22. Pollak, Robert A, 1976. "Interdependent Preferences," American Economic Review, American Economic Association, vol. 66(3), pages 309-320, June.
    23. Arthur Campbell, 2013. "Word-of-Mouth Communication and Percolation in Social Networks," American Economic Review, American Economic Association, vol. 103(6), pages 2466-2498, October.
    24. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    25. Enrico Moretti, 2011. "Social Learning and Peer Effects in Consumption: Evidence from Movie Sales," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 356-393.
    26. Elizabeth Currid‐Halkett & Hyojung Lee & Gary D. Painter, 2019. "Veblen goods and urban distinction: The economic geography of conspicuous consumption," Journal of Regional Science, Wiley Blackwell, vol. 59(1), pages 83-117, January.
    27. Stephanie von Hinke & George Leckie & Cheti Nicoletti, 2019. "The Use of Instrumental Variables in Peer Effects Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(5), pages 1179-1191, October.
    28. Jurui Zhang & Yong Liu & Yubo Chen, 2015. "Social Learning in Networks of Friends versus Strangers," Marketing Science, INFORMS, vol. 34(4), pages 573-589, July.
    29. Wu, Lingling & Zhang, Junyi & Chikaraishi, Makoto, 2013. "Representing the influence of multiple social interactions on monthly tourism participation behavior," Tourism Management, Elsevier, vol. 36(C), pages 480-489.
    30. Young-Jin Lee & Kartik Hosanagar & Yong Tan, 2015. "Do I Follow My Friends or the Crowd? Information Cascades in Online Movie Ratings," Management Science, INFORMS, vol. 61(9), pages 2241-2258, September.
    31. Bahri-Ammari, Nedra & Coulibaly, Daouda & Ben Mimoun, Mohamed Slim, 2020. "The bandwagon luxury consumption in Tunisian case: The roles of independent and interdependent self concept," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    32. Veblen, Thorstein, 1899. "The Theory of the Leisure Class," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1899.
    33. Lo, Iris Sheungting & McKercher, Bob, 2015. "Ideal image in process: Online tourist photography and impression management," Annals of Tourism Research, Elsevier, vol. 52(C), pages 104-116.
    34. Munar, Ana María & Jacobsen, Jens Kr. Steen, 2014. "Motivations for sharing tourism experiences through social media," Tourism Management, Elsevier, vol. 43(C), pages 46-54.
    35. Powell, Lisa M. & Tauras, John A. & Ross, Hana, 2005. "The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior," Journal of Health Economics, Elsevier, vol. 24(5), pages 950-968, September.
    36. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 797-817.
    37. Joaquín Alegre & Sara Mateo & Llorenç Pou, 2009. "Participation in Tourism Consumption and the Intensity of Participation: An Analysis of Their Socio-Demographic and Economic Determinants," Tourism Economics, , vol. 15(3), pages 531-546, September.
    38. Pinar Karaca-Mandic & Kenneth Train, 2003. "Standard error correction in two-stage estimation with nested samples," Econometrics Journal, Royal Economic Society, vol. 6(2), pages 401-407, December.
    39. Joaquín Alegre & Llorenç Pou, 2004. "Micro-Economic Determinants of the Probability of Tourism Consumption," Tourism Economics, , vol. 10(2), pages 125-144, June.
    40. Mark Grinblatt & Matti Keloharju & Seppo Ikäheimo, 2008. "Social Influence and Consumption: Evidence from the Automobile Purchases of Neighbors," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 735-753, November.
    41. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    42. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    43. Eugenio-Martin, Juan L. & Campos-Soria, Juan A., 2010. "Climate in the region of origin and destination choice in outbound tourism demand," Tourism Management, Elsevier, vol. 31(6), pages 744-753.
    44. Mainolfi, Giada, 2020. "Exploring materialistic bandwagon behaviour in online fashion consumption: A survey of Chinese luxury consumers," Journal of Business Research, Elsevier, vol. 120(C), pages 286-293.
    45. George A. Akerlof, 1980. "A Theory of Social Custom, of which Unemployment may be One Consequence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 749-775.
    46. Walker, Joan L. & Ehlers, Emily & Banerjee, Ipsita & Dugundji, Elenna R., 2011. "Correcting for endogeneity in behavioral choice models with social influence variables," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(4), pages 362-374, May.
    47. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2013. "Tourism participation and expenditure by Spanish households: The effects of the economic crisis and unemployment," Tourism Management, Elsevier, vol. 39(C), pages 37-49.
    48. Corneo, Giacomo & Jeanne, Olivier, 1997. "Snobs, bandwagons, and the origin of social customs in consumer behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 333-347, March.
    49. Kastanakis, Minas N. & Balabanis, George, 2012. "Between the mass and the class: Antecedents of the “bandwagon” luxury consumption behavior," Journal of Business Research, Elsevier, vol. 65(10), pages 1399-1407.
    50. Jinkins, David, 2016. "Conspicuous consumption in the United States and China," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 115-132.
    51. Lee, Seonjeong Ally & Oh, Haemoon, 2017. "Sharing travel stories and behavioral outcomes: A case of travel," Tourism Management, Elsevier, vol. 62(C), pages 147-158.
    52. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
    53. H. Leibenstein, 1950. "Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(2), pages 183-207.
    54. Boley, B. Bynum & Jordan, Evan J. & Kline, Carol & Knollenberg, Whitney, 2018. "Social return and intent to travel," Tourism Management, Elsevier, vol. 64(C), pages 119-128.
    55. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adriaan R. Soetevent, 2006. "Empirics of the Identification of Social Interactions; An Evaluation of the Approaches and Their Results," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 193-228, April.
    2. Clark, Andrew E. & Loheac, Youenn, 2007. ""It wasn't me, it was them!" Social influence in risky behavior by adolescents," Journal of Health Economics, Elsevier, vol. 26(4), pages 763-784, July.
    3. Anna K. Edenbrandt & Christian Gamborg & Bo Jellesmark Thorsen, 2020. "Observational learning in food choices: The effect of product familiarity and closeness of peers," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 482-498, June.
    4. Peter Kooreman & Adriaan R. Soetevent, 2007. "A discrete-choice model with social interactions: with an application to high school teen behavior," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 599-624.
    5. Ryota Nakamura & Marc Suhrcke & Daniel John Zizzo, 2017. "A triple test for behavioral economics models and public health policy," Theory and Decision, Springer, vol. 83(4), pages 513-533, December.
    6. Ana Balsa & Carlos Díaz, 2018. "Social interactions in health behaviors and conditions," Documentos de Trabajo/Working Papers 1802, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    7. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    8. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2021. "Social interaction and technology adoption: Experimental evidence from improved cookstoves in Mali," World Development, Elsevier, vol. 144(C).
    9. Dong, Bin & Dulleck, Uwe & Torgler, Benno, 2012. "Conditional corruption," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 609-627.
    10. Maness, Michael & Cirillo, Cinzia & Dugundji, Elenna R., 2015. "Generalized behavioral framework for choice models of social influence: Behavioral and data concerns in travel behavior," Journal of Transport Geography, Elsevier, vol. 46(C), pages 137-150.
    11. Quintana-Domeque, Climent & Wohlfart, Johannes, 2016. "“Relative concerns for consumption at the top”: An intertemporal analysis for the UK," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 172-194.
    12. Jeffrey E. Harris & Beatriz Lopez-Valcarcel, 2004. "Asymmetric Social Interaction in Economics: Cigarette Smoking Among Young People in the United States, 1992-1999," NBER Working Papers 10409, National Bureau of Economic Research, Inc.
    13. Schanne, Norbert, 2012. "The formation of experts' expectations on labour markets : do they run with the pack?," IAB-Discussion Paper 201225, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Crawford, Ian & Harris, Donna, 2018. "Social interactions and the influence of “extremists”," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 238-266.
    15. Powell, Lisa M. & Tauras, John A. & Ross, Hana, 2005. "The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior," Journal of Health Economics, Elsevier, vol. 24(5), pages 950-968, September.
    16. Grodner, Andrew & Kniesner, Thomas J. & Bishop, John A., 2011. "Social Interactions in the Labor Market," Foundations and Trends(R) in Microeconomics, now publishers, vol. 6(4), pages 265-366, September.
    17. Elisabetta Lazzaro & Carlofilippo Frateschi, 2008. "Attendance to cultural events and spousal influences: the Italian case," "Marco Fanno" Working Papers 0084, Dipartimento di Scienze Economiche "Marco Fanno".
    18. Margaretic, Paula & Cifuentes, Rodrigo & Carreño, José Gabriel, 2021. "Banks’ interconnections and peer effects: Evidence from Chile," Research in International Business and Finance, Elsevier, vol. 58(C).
    19. Goldbaum, David, 2021. "The origins of influence," Economic Modelling, Elsevier, vol. 97(C), pages 380-396.
    20. Arun Advani & Bansi Malde, 2018. "Methods to identify linear network models: a review," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-16, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:anture:v:93:y:2022:i:c:s0160738322000172. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/annals-of-tourism-research/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.