Does Competition Benefit Complements? Evidence from Airlines and Hotels
利用工具变量策略，研究发现航空公司竞争加剧会显著提升酒店的价格、入住率和每间可用客房收入，其中低端品牌酒店和价格敏感型旅客受益最大，但并未导致更多酒店进入市场。
We analyze how changes in the market structure of one industry—airlines—affect the performance of firms in a complementary industry—hotels—using an instrumental variables strategy to account for potential correlation between unobserved shocks to both markets. We find that more intense airline competition boosts hotel performance across all standard measures: price, occupancy rate, and revenue per available room. Spillovers vary across hotel quality and passenger type: Lower-quality branded hotels serving more price-sensitive travelers, most likely brought into the market because of more intense airline competition, benefit the most. However, performance spillovers do not translate into higher hotel entry. This paper was accepted by Joshua Gans, business strategy. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2022.4568 .