Agenda

10 Mar 2026 14:30

The Timing of Spatial Competition: Price Reaction Functions Across Booking Horizons

Campus San Giobbe - Aula Saraceno, Online

The Timing of Spatial Competition: Price Reaction Functions Across Booking Horizons
By Veronica Leoni, Associate Professor in the Department of Applied Economics, University of the Balearic Islands.
 
March 10, h. 2:30 PM
San Giobbe Economic Campus - Aula Saraceno and online (https://meet.google.com/cyt-vndw-wyr

Abstract
This paper explores the interplay between the spatial and temporal dimensions of price competition in the hotel industry. Like other perishable and non-storable services, hotel accommodation requires advance booking by consumers and faces a strict sales deadline—the check-in date— beyond which unsold rooms represent irrecoverable revenue loss. This temporal constraint incentivizes the use of intertemporal price discrimination, where room rates vary based on the booking lead time. At the same time, hotels compete in spatially differentiated markets, where proximity to key attractions or business districts confers market power but also intensifies competition with nearby establishments offering comparable services. By integrating these two perspectives, this study examines how spatial price competition evolves over different booking horizons. Using a panel dataset of hotels in Venice that includes daily posted prices across multiple advance booking intervals, we estimate spatial pricing reaction functions at each horizon using Spatial Durbin Models. This methodology enables us to capture both the direct pricing responses of individual hotels and the spillover effects stemming from neighboring competitors’ prices and room availability.

Language

The event will be held in English

Organized by

Venice School of Management, NOIS Lab

Search in the agenda