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

Damianov, D.S.; Sanders, S.

doi:10.1515/1935-5041.1035

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

Damianov, D.S.; Sanders, S.

Authors

Professor Damian Damianov damian.damianov@durham.ac.uk
Professor

S. Sanders

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
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