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 for hotels listed on Booking.com. Our analysis reveals significant price decreases in the short run, but a more limited effect in the medium run. However, hotels characterized by a more complex organizational structure decreased their prices more substantially. Overall, the intervention appears to have benefited a subset of consumers using Booking.com.
|Journal||European Economic Review|
|Early online date||3 Dec 2020|
|Publication status||Published - 3 Dec 2020|
- Antitrust evaluation
- Hotel pricing
- Online travel agents
- Price parity clauses