Market Segmentation : The Role of Opaque Travel Agencies

@inproceedings{SHAPIRO2006MarketS,
  title={Market Segmentation : The Role of Opaque Travel Agencies},
  author={DMITRY SHAPIRO},
  year={2006}
}
  • DMITRY SHAPIRO
  • Published 2006
This paper investigates the role of discount travel agencies such as Priceline and Hotwire in the market segmentation of the hotel and airline industries. These agencies conceal important characteristics of the offered services, such as hotel locations or flight schedules. We explicitly model this opaque feature and show that it enables service providers to price discriminate between those customers who are sensitive to service characteristics and those who are not. Service providers can profit… CONTINUE READING

Citations

Publications citing this paper.
Showing 1-10 of 20 extracted citations

References

Publications referenced by this paper.
Showing 1-10 of 17 references

Partial-Repeat-Bidding in the Name-Your-Own-Price Channel,

  • S. Fay
  • Marketing Science,
  • 2004
Highly Influential
5 Excerpts

When Should a Service Provider Employ a ‘Name Your Own Price’ Channel?

  • T Wang, E. Gal-Or, R. Chatterjee
  • Working Paper,
  • 2006
Highly Influential
3 Excerpts

Recent Developments in the Economics of Price Discrimination,

  • M. Armstrong
  • Advances in Economics and Econometrics: Theory…
  • 2006
2 Excerpts

Selling an Opaque Product through an Intermediary : The case of Disguising One ’ s Product

  • S. Fay
  • Journal of Retailing
  • 2006

Measuring Individual Frictional Costs and Willingness-to-Pay via Name-Your-Own-Price Mechanisms,

  • M. Spann, B. Skiera
  • Schafers,
  • 2004
1 Excerpt

Similar Papers

Loading similar papers…