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Volume 27, Issue 4, Winter 2018

Peer‐to‐peer sharing in the lodging market: Evaluating implications for social welfare and profitability

Esther Gal-Or

With a focus on the lodging market, we investigate the nature of competition between a peer‐to‐peer platform and a traditional lodging provider (hotel), in an environment where both possess the market power to affect the final lodging price established in the market. To understand such an environment, we investigate the strategy choices of the three types of players active in this market: the platform, the hotel, and individuals in the population who consider supplying or demanding lodging capacity. We use our analysis to predict how the emergence of the peer‐to‐peer platform affects the profits of the hotel and the welfare of consumers. We characterize two types of equilibria: Partial Coverage and Full Coverage. The former type arises if each individual’s demand for lodging while on vacation is relatively low in comparison to her supply. In this case, the level of demand originating from vacationers is insufficient to make it worthwhile for the platform to lower its service fee in order to attract capacity from every individual in the population. In contrast, when the demand for lodging while on vacation is relatively high, it may become profitable for the platform to implement the Full Coverage equilibrium, in which case every individual supplies lodging capacity to the platform. We demonstrate that the entry of the platform to the market will definitely increase the consumer surplus if the platform chooses to implement the Full Coverage equilibrium. At the Partial Coverage equilibrium, the consumer surplus might actually decline upon the entry of the platform. This might happen because the entry of the platform can sometimes lead to higher lodging prices, and as a result, can hurt individuals when vacationing. Because the entry of the platform raises the income of individuals in the economy, their willingness to pay for lodging while on vacation may rise. Such higher prices may also sometimes lead to higher profits for the hotel, in spite of the competition with the platform. In the special case that individuals experience no disutility when offering a portion of their housing space to the platform because this space has no alternative use for the individual, the entry of the platform will always lead to higher consumer welfare and lower profits for the hotel, irrespective of whether Full or Partial Coverage arises as equilibrium.

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Esther Gal-Or

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Recently Published Articles

Volume 27, Issue 3, Fall 2018

Special Issue: Innovation Economics III: Patents, Trademarks, and Technology Standards Datasets

Micro Moments Database for cross‐country analysis of ICT, innovation, and economic outcomes

Eric Bartelsman, Eva Hagsten, and Michael Polder
This paper provides technical documentation to a database built up from firm‐level sources titled Micro Moments Database (MMD) that is made available for researchers through Eurostat. The MMD is an internationally harmonized research database of statistical moments collected from linked longitudinal firm‐level data in a large selection of EU national statistical offices. 

Making the patent scope consistent with the invention: Evidence from Japan

Yoshimi Okada, Yusuke Naito, and Sadao Nagaoka
It is a crucial function of patent examination to make the patent scope consistent with the contribution of the invention to the state of the art. We assess this function using newly developed data on the scope of Japanese patent applications and grants.

Constructing a Chinese patent database of listed firms in China: Descriptions, lessons, and insights

Zi-Lin He, Tony W. Tong, Yuchen Zhang, Wenlong He
Although China is now the largest patent filing country in the world, there is little firm-level research using Chinese patents due to difficulties in integrating Chinese patent data with firm data. To partially address this gap, we construct a Patent Database linking State Intellectual Property Office (SIPO) patents to all listed firms and their subsidiaries in China, and we are making the database publicly available to the research community.

The USPTO Patent Examination Research Dataset: A window on patent processing

Stuart J.H. Graham, Alan C. Marco, and Richard Miller
This article describes the “USPTO Patent Examination Research Dataset” (PatEx) and explores possible selection issues and the representativeness of the nearly 9.2 million US patent application records it contains.

Machine learning and natural language processing on the patent corpus: Data, tools, and new measures

Benjamin Balsmeier, Mohamad Assaf, Tyler Chesebro, Gabe Fierro, Kevin Johnson, Scott Johnson, Guan‐Cheng Li, Sonja Lück, Doug O'Reagan, Bill Yeh, Guangzheng Zang, and Lee Fleming
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Mapping standards to patents using declarations of standard‐essential patents

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This paper describes a new database of declared standard‐essential patents (SEPs), discusses methods for matching declared SEPs to specific standard documents, and presents empirical evidence on technology standards subject to declared SEPs. It discusses opportunities for new empirical research using databases of declared SEPs and data on patenting in standard‐related technology classes.

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Unpacking 3GPP standards

Justus Baron and Kirti Gupta
This paper describes a new database with detailed information on standardization procedures at the 3rd Generation Partnership Project (3GPP). 3GPP is the most relevant standard‐setting organization (SSO) in the field of mobile telecommunications.  The present database contains information on membership, meeting attendance, chairmanship, work items, contributions, and votes at 3GPP. These data shed light on the technical complexity of standard development and illustrate the importance of voluntary contributions from SSO members.

Monetizing marks: Insights from the USPTO Trademark Assignment Dataset

Stuart J. H. Graham, Alan C. Marco, and Amanda F. Myers
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Volume 27
Issue 2

Volume 27, Issue 2, Summer 2018

Multibrand pricing as a strategy for consumer search obfuscation in online markets

Stephen McDonald and Colin Wren
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Christian Michel
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Inefficient NGO labels: Strategic proliferation and fragmentation in the market for certification

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Poaching in media: Harm to subscribers?

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Behavior‐ and characteristic‐based price discrimination

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Volume 27
Issue 1

Volume 27, Issue 1, Spring 2018

Do retail mergers affect competition? Evidence from grocery retailing

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Price and quality competition with quality positions

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Volume 26
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Volume 26, Issue 4, Winter 2017

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Firms with very similar products often present their products in different ways. This makes it difficult for consumers to find out which product fits their needs best, or which one is the cheapest. Why is there no convergence toward common ways to present products? Is it possible for firms to maintain high prices by confusing consumers? We run a market experiment to investigate those questions.

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Signaling by an informed service provider

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