The Price Effects of Prohibiting Price Parity Clauses: Evidence from Global Hotel Chains
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ID: 313653
2026
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Abstract
Abstract Dominant platforms like Booking.com have often imposed Price Parity Clauses to prevent lower prices on alternative sales channels. We provide quasi-experimental evidence on the removal of these price restrictions in France in 2015 for three major global hotel groups. Our analysis reveals limited and non-significant price effects for rooms sold through consumer-visible channels, such as hotels’ websites or online travel agencies. However, we document a significant price reduction on sales channels not visible to consumers, such as direct offline bookings. Additionally, we identify a significant shift in the share of bookings from online travel agencies to the hotels’ direct offline channels.
| Reference Key |
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|---|---|
| Authors | Jack (Peiyao) Ma, Andrea Mantovani, Carlo; id_orcid 0000-0002-5069-3592 Reggiani, Annette Broocks, Néstor Duch-Brown |
| Journal | the economic journal |
| Year | 2026 |
| DOI |
10.1093/ej/ueag059
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| URL | |
| Keywords | Keywords not found |
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