Why Don't You Two Get a Room? A Puzzle and Pricing Model of Extra Services in Hotels

Damianov, D.S.; Sanders, S.

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.

Citation

Damianov, D., & Sanders, S. (2012). Why Don't You Two Get a Room? A Puzzle and Pricing Model of Extra Services in Hotels. Journal of Industrial Organization Education, 6(1), Article 1035. https://doi.org/10.1515/1935-5041.1035

• Journal Article Type: Article
• Publication Date: Dec 11, 2012
• Deposit Date: Aug 27, 2013
• Publicly Available Date: Sep 1, 2015
• Journal: Journal of Industrial Organization Education
• Print ISSN: 1935-5041
• Electronic ISSN: 1935-5041
• Publisher: De Gruyter
• Peer Reviewed: Peer Reviewed
• Volume: 6
• Issue: 1
• Article Number: 1035
• DOI: https://doi.org/10.1515/1935-5041.1035
• Keywords: Marginal pricing, Price discrimination, Self-disclosure of customer type.
• Public URL: https://durham-repository.worktribe.com/output/1479312