IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v49y2017i51p5166-5182.html
   My bibliography  Save this article

Third-degree price discrimination in a short-stay accommodation industry

Author

Listed:
  • Ann Marsden
  • Hugh Sibly

Abstract

This article analyses the pricing in the short-stay accommodation industry in Tasmania. It utilizes a novel 2008 survey of Tasmanian short-stay accommodation firms in which business managers were asked about their perception of the elasticity of their firm’s demand in each of the market segments that their firm supplied. This direct observation of elasticity allows us to demonstrate that firms’ price across market segments act in a manner consistent with the Lerner index and the theory of third-degree price discrimination. Further we show, in line with expectations based on the literature, that increased quality of the accommodation lowers the elasticity of demand, while the elasticity of demand is higher in winter. Surprisingly, Internet sales channels do not exhibit a different elasticity of demand to other sales channels.

Suggested Citation

  • Ann Marsden & Hugh Sibly, 2017. "Third-degree price discrimination in a short-stay accommodation industry," Applied Economics, Taylor & Francis Journals, vol. 49(51), pages 5166-5182, November.
  • Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5166-5182
    DOI: 10.1080/00036846.2017.1302063
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2017.1302063
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00036846.2017.1302063?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. Jan Gertheiss & Gerhard Tutz, 2009. "Penalized Regression with Ordinal Predictors," International Statistical Review, International Statistical Institute, vol. 77(3), pages 345-365, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Petricek & Stepan Chalupa & Karel Chadt, 2020. "Identification of Consumer Behavior Based on Price Elasticity: A Case Study of the Prague Market of Accommodation Services," Sustainability, MDPI, vol. 12(22), pages 1-14, November.

    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. Faisal Zahid & Gerhard Tutz, 2013. "Multinomial logit models with implicit variable selection," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 7(4), pages 393-416, December.
    2. Gerhard Tutz & Jan Gertheiss, 2014. "Rating Scales as Predictors—The Old Question of Scale Level and Some Answers," Psychometrika, Springer;The Psychometric Society, vol. 79(3), pages 357-376, July.
    3. Hess, Wolfgang & Persson, Maria & Rubenbauer, Stephanie & Gertheiss, Jan, 2013. "Using Lasso-Type Penalties to Model Time-Varying Covariate Effects in Panel Data Regressions - A Novel Approach Illustrated by the 'Death of Distance' in International Trade," Working Papers 2013:5, Lund University, Department of Economics.
    4. Kathrin Leppek & Gun Woo Byeon & Wipapat Kladwang & Hannah K. Wayment-Steele & Craig H. Kerr & Adele F. Xu & Do Soon Kim & Ved V. Topkar & Christian Choe & Daphna Rothschild & Gerald C. Tiu & Roger We, 2022. "Combinatorial optimization of mRNA structure, stability, and translation for RNA-based therapeutics," Nature Communications, Nature, vol. 13(1), pages 1-22, December.
    5. Gerhard Tutz & Micha Schneider & Maria Iannario & Domenico Piccolo, 2017. "Mixture models for ordinal responses to account for uncertainty of choice," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 11(2), pages 281-305, June.
    6. Faisal M. Zahid & Shahla Ramzan, 2012. "Ordinal ridge regression with categorical predictors," Journal of Applied Statistics, Taylor & Francis Journals, vol. 39(1), pages 161-171, March.
    7. Reher, Leonie & Runst, Petrik & Thomä, Jörg & Bizer, Kilian, 2024. "Measuring non-R&D drivers of innovation: The case of SMEs in lagging regions," ifh Working Papers 45/2024, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    8. Faisal Maqbool Zahid & Gerhard Tutz, 2013. "Proportional Odds Models with High‐Dimensional Data Structure," International Statistical Review, International Statistical Institute, vol. 81(3), pages 388-406, December.

    More about this item

    Statistics

    Access and download statistics

    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:taf:applec:v:49:y:2017:i:51:p:5166-5182. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.