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Can mergers increase output? Evidence from the lodging industry
Journal article   Peer reviewed

Can mergers increase output? Evidence from the lodging industry

Arturs Kalnins, Luke Froeb and Steven Tschantz
The Rand journal of economics, Vol.48(1), pp.178-202
03/22/2017
DOI: 10.1111/1756-2171.12172

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Abstract

We find that hotel mergers increase occupancy. In some specifications, price also rises. Because these effects occur only in markets with high capacity utilization and high uncertainty, we reject simple models of price or quantity competition in favor of models of "revenue management," where firms price to fill available capacity in the face of uncertain demand.
Business & Economics Economics Social Sciences

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