Entry, Ownership Form, and Spatial Location: An Analysis of the Hotel Industry

This paper analyses the impact of ownership type on the locating behavior and capacity choice of prospective entrant hotels. An important aspect which has often been neglected in the entry literature is the relevance of the ownership that defines an establishment. A hotel outlet can be company-owned, franchised, or independently owned. As this is an important driver of the incentive structure for a firm as well as a strategic indicator for its (prospective) competitors, this paper argues that ownership form is a necessary explanatory factor in market conduct analysis. We show using a spatial lag model that a disaggregated analysis provide a good understanding of market interaction among hotels.


Subject(s):
Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/49561
Total Pages:
20
Note:
Replaced with revised version of paper 07/24/09.
Series Statement:
Selected Paper
613539




 Record created 2017-04-01, last modified 2017-08-25

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