Wednesday, July 10, 2019
Andrea Mantovani, University of Bologna, Claudio A. Piga, Keele University – Keele Management School, and Carlo Reggiani, University of Manchester ask Much Ado About Nothing? Online Platform Price Parity Clauses and the EU Booking.com Case.
ABSTRACT: Online platforms often impose Price Parity Clauses to prevent sellers from charging lower prices on alternative sales channels. We provide quasi-experimental evidence on the full removal of Price Parity Clauses in France in 2015 and in Italy in 2017 for hotels listed on Booking.com. Our analysis reveals a relatively limited effect in the short run followed by a significant reduction in room prices in the medium run. Moreover, we find that hotels affiliated with chains decreased their prices more than independent hotels, both in the short and medium run.