臺灣博碩士論文加值系統

This thesis discusses the effect of Low(est) Price Guarantees (LPGs) in
the duopoly-dominated Online Travel Agency (OTA) market,
accompanied by a short field study of price quotes for five separate hotel
bookings. Furthermore, it displays the hassle cost of invoking a LPG,
based on an empirical evidence with an OTA. Despite this hassle cost
being large, it finds price homogeneity within the OTAs observed,
which is an indicator for missing competitive elements and can be
interpreted as an increase of price level triggered by tacit collusion
effects.

This thesis discusses the effect of Low(est) Price Guarantees (LPGs) in
the duopoly-dominated Online Travel Agency (OTA) market,
accompanied by a short field study of price quotes for five separate hotel
bookings. Furthermore, it displays the hassle cost of invoking a LPG,
based on an empirical evidence with an OTA. Despite this hassle cost
being large, it finds price homogeneity within the OTAs observed,
which is an indicator for missing competitive elements and can be
interpreted as an increase of price level triggered by tacit collusion
effects.

I. Introduction ........................................................................................... 1
II. Categorization .................................................................................... 2
II.1 Effects of LPGs ...................................................................................... 3
II.2 The tacit collusion effect ........................................................................ 3
II.3 Factors differing from Theorem .......................................................... 4
III. Literature Review .............................................................................. 6
IV. The Duopoly of the OTA market ..................................................... 9
IV.1 Overview of LPGs offered for hotel bookings .............................. 13
IV.2 Empirical evidence of hassle cost ................................................... 14
V. Field study ........................................................................................ 16
V.1 Methodology ........................................................................................ 16
V.2 Chart ..................................................................................................... 17
V.3 Analysis ................................................................................................ 18
VI. Legal challenges ............................................................................... 19
VII. Conclusion .................................................................................... 21
Bibliography ................................................................................................... 23
Appendix ........................................................................................................ 24

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guarantees to discourage price cutting. International Journal of Industrial
Organization, 24(6), 1139–1156.
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Nicht verbraucherfreundlich, sondern ein Instrument zur Durchsetzung hoher
Preise. DIW-Wochenbericht, 79(16), 12–16.
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https://doi.org/10.1016/j.ijhm.2007.07.016
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Perspektiven Der Wirtschaftspolitik, 17(3), 276–288.
https://doi.org/10.1515/pwp-2016-0022
Expedia Inc. (2017). Expedia Inc. Annual Report 2016.
Ho, H., Ganesan, S., & Oppewal, H. (2011). The Impact of Store-Price Signals on
Consumer Search and Store Evaluation. Journal of Retailing, 87(2), 127–141.
https://doi.org/10.1016/j.jretai.2011.01.007
Hviid, M. (2010). Summary of the literature on price guarantees, I(July 2010), 1–
22. Retrieved from http://www.uea.ac.uk/polopoly_fs/1.170059!Summary of
LPG literature Final.pdf
Hviid, M., & Shaffer, G. (1999). Hassle costs: The Achilles’ heel of pricematching
guarantees. Journal of Economics & Management Strategy, 8(4),
489–521. https://doi.org/10.1162/105864099567730
Priceline Inc. (2017). Priceline Group Annual Report.