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Market size, service quality and competition in the US downhill ski industry

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  • James Mulligan

Abstract

Using a two-sector model of congestion, I explain theoretically how lower travel costs and increased consumer income over time resulted in endogenous investment in quality and higher real prices at both national and local ski resorts despite limited market entry. I also provide empirical evidence for the US ski industry in support of the implications of the model.

Suggested Citation

  • James Mulligan, 2011. "Market size, service quality and competition in the US downhill ski industry," Applied Economics Letters, Taylor & Francis Journals, vol. 18(15), pages 1497-1500.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:15:p:1497-1500
    DOI: 10.1080/13504851.2010.543072
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    References listed on IDEAS

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    1. Morey, Edward R, 1984. "The Choice of Ski Areas: Estimation of a Generalized CES Preference Ordering with Characteristics," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 584-590, November.
    2. Astrid A. Dick, 2007. "Market Size, Service Quality, and Competition in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(1), pages 49-81, February.
    3. Richard G. Walsh & Nicole P. Miller & Lynde O. Gilliam, 1983. "Congestion and Willingness to Pay for Expansion of Skiing Capacity," Land Economics, University of Wisconsin Press, vol. 59(2), pages 195-210.
    4. Paul B. Ellickson, 2007. "Does Sutton apply to supermarkets?," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 43-59, March.
    5. James G. Mulligan & Emmanuel Llinares, 2003. "Market Segmentation and the Diffusion of Quality-Enhancing Innovations: The Case of Downhill Skiing," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 493-501, August.
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    1. Robert C. Fonner & Robert P. Berrens, 2014. "A Hedonic Pricing Model of Lift Tickets for US Alpine Ski Areas: Examining the Influence of Crowding," Tourism Economics, , vol. 20(6), pages 1215-1233, December.

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