Why don't you two get a room? A puzzle and pricing model of extra services in hotels

Damian S. Damianov, Shane D. Sanders

Research output: Contribution to journalArticle

Abstract

This case study focuses on the following "rational riddle" raised in a recent popular economics book: Hotels in Britain usually charge per guest while hotels in the US typically charge per room. What is the reason for this difference? We propose a pricing model for extra services which points to one possible explanation.

Original languageEnglish (US)
JournalJournal of Industrial Organization Education
Volume6
Issue number1
DOIs
StatePublished - Dec 2012

Keywords

  • Marginal pricing
  • Price discrimination
  • Self-disclosure of customer type

ASJC Scopus subject areas

  • Business and International Management
  • Education
  • Industrial relations

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